How to distribute dividends to Andorra?

The dividend in Andorra varies according to whether a resident or non-resident:

DIVIDENDS PAID TO RESIDENTS

The law of income tax levied on income received by taxpayers whenever they can qualify as income subject to tax. However, the Income Tax Law has introduced a series of income, despite receiving the consideration of income subject, they enjoy tax exemption , provided they meet the requirements set by the regulations. The most notable exceptions are:

• The dividends and participation in profits and which are paid by companies resident in Andorra.

• The gains and capital losses arising from the transfer of sharesWhen the transferor, either individually or jointly with other persons connected or united by ties of kinship to the third degree, not taken during the 12 months preceding the transfer, a share greater than 25% in the capital. This exemption is also applicable to collective investment schemes. They are also exempt from capital gains and losses arising from the transmission of these values ??when a share, computed under the specified terms, more than 25 percent in the capital, equity, results or voting rights the institution in the twelve months preceding the time of transmission, when the taxpayer has owned the property values ??above, at least during the ten years prior to transmission.

• Capital gains and losses arising from the transfer of real property located outside Andorran territory when the taxpayer has chosen had the property, at least during the ten years prior to transmission.

• The income derived from bonds issued in the Principality of Andorra.

DIVIDENDS PAID TO NON-RESIDENTS

The income tax of non-resident tax is a direct tax levied on income obtained in Andorra to natural or legal persons not resident tax. They r Ende not subject to tax:

• The investment income (dividends, interest, income mutual funds, etc.)

• The interest and other income earned by the sale of equity to third parties.

• The real estate appreciation by persons not tax residents without permanent establishment, provided that they are subject to the tax on capital gains on real estate property transfer.