Both ministers welcomed the signing and expressed their willingness to strengthen bilateral and multilateral cooperation. The Cypriot minister expressed his country’s support for the process of negotiating an association agreement between Andorra and the EU.
What is the purpose of CDIs?
The double taxation conventions (CDI) are international treaties that aim to prevent situations of double taxation internationally through a series of criteria, involving the two Contracting States. CDIs facilitate foreign investment and promote the competitiveness of domestic companies abroad.
These agreements apply to natural and legal persons residing in any of the signatory States and concerns taxes on incomes and assets, which may be requested by each of the signatory States and / or their political and administrative subdivisions. In them, it is established which of the two States has the competence to tax the incomes.
To ensure the correct functioning of a DTA, both the tax system, legislation on transparency, and accounting laws of the two signatory States must be compatible.
These agreements entail a major step forward in the Principality of Andorra by bringing an end to the taxation of deductions at origin that certain administrations, such as France or Spain, applied to Andorran corporations that wanted to export their services to these countries. It is therefore an indispensable element for the economic opening of the country.
Photo: Govern d’Andorra
