From the start of 2025, companies in Andorra will have the opportunity to prepare tax plans that will allow them to fulfil all their obligations throughout the year. This not only avoids delays and penalties, but also optimises financial management, enabling companies to take full advantage of the Andorran tax system. This guide details the main fiscal obligations month by month so that your business is prepared and well organised.
Table of contents:
- General fiscal obligations in Andorra
Fiscal calendar 2025: month by month
Benefits of tax planning in Andorra
Your tax advisors in Andorra
General fiscal obligations in Andorra
Before looking at the detailed tax calendar, it is important to recall the main fiscal obligations for companies:
- Corporate Income Tax (IS): taxed on the company’s net profits at a general rate of 10%.
- General Indirect Tax (IGI): this is the equivalent of VAT in Spain (TVA in France / VAT in the UK). Its general rate is 4.5%, and the manner of its declaration and settlement depends on the income of the business.
- Withholding: this is the obligation to withhold and pay tax on payments to taxable employees, suppliers or professional people.
- CASS contributions: social security contributions on behalf of employees and by self-employed people.
- Submission of annual accounts: this is a mandatory requirement for companies whose turnover is above certain thresholds.
- Local taxes: you will have to take into account the fact that each Comú (city council) includes municipal taxes related to commercial and business activities.
Fiscal calendar 2025: month by month
• January – Start of the fiscal year
Review and updating of your company’s data:
Make sure that the data registered with the Commercial Register and the Tax Authorities are up to date. Notify any changes in corporate structure, address or economic activity.
Annual tax planning:
Develop a strategy to optimise taxes and make the most of deductions. Create an internal calendar of tax deadlines so that you don’t miss any.
IGI declaration/settlement:
- 4th quarter of 2024 for companies whose annual turnover is less than €250,000.
- 2nd half of 2024 for companies whose annual income is less than €3,600,000.
- Monthly (corresponding to the previous month), for companies whose annual income is more than €3,600,000. Please note that you will have to file a General Indirect Tax return every month in 2025 if your income exceeds €3,600,000 per year.
• February and March – Preparation of tax returns. Preparation of the accounting documents
Preparation of balance sheets, invoices and accounting records required for corporation tax returns and the previous year’s accounts.
• April – General Indirect Tax (IGI) for the first quarter of 2025
IGI is submitted for the first quarter of 2025 by businesses whose turnover is less than €3,600,000.
• June – Corporate Income Tax Return
Closing of the tax year:
Companies have until 30th June to file their final corporation tax return for the 2024 tax year. It is important to ensure that all deductions are correctly applied.
• July – Final settlement of Corporate Income Tax (IS)
The percentage to be paid of the corporate tax for the previous year (in this case 2024) is calculated, and the amount paid on account in the previous September is subtracted.
IGI Declaration:
• 2nd quarter of 2025: for companies whose turnover is less than €3,600,000.
• Half-yearly: the first 6 months of the year for turnovers not exceeding €250,000.
• Monthly for companies whose turnover is more than €3,600,000 for the month of June (remember that if you exceed this turnover you will have to submit and settle it each month, in the previous month).
• September – Payment of IS on account
In September, companies in Andorra are required to make an advance payment of corporation tax, which is calculated by applying half of the total tax rate to the profits made in the previous tax year. The purpose of this is to facilitate the collection of the tax and to spread the tax burden throughout the year, thus ensuring that companies fulfil their fiscal obligations progressively.
This advance payment is taken into account when the final income tax return for the current year is filed, and the final payment is adjusted accordingly.
• October – Third quarter declaration and settlement of IGI
3rd Quarter 2025: for companies whose turnover is less than €3,600,000.
• November – Audits and internal control
Preparation for the auditing
If your business is due to be audited, now is the time to start gathering the necessary documentation. Audits will be required for companies above a certain size in terms of assets and turnover. This requirement will come into force for the financial years beginning on or after 1st January, 2025.
Internal audit:
Carry out an internal audit to identify errors or inconsistencies in the accounts.
• December – Preparation for the fiscal year-end
Closing the accounts:
Organise all financial records and ensure that fiscal obligations have been fulfilled. Now is the time to adjust any outstanding payments to enter 2026 without tax debts.
Planning for 2026:
Assess the year’s financial performance and make adjustments to the fiscal strategy for the coming year.
Benefits of tax planning in Andorra
The Andorran tax system is not only competitive, but also transparent and accessible. There are several advantages to meeting your fiscal obligations on time:
- Avoidance of penalties: fines for non-compliance can be costly, and can damage your company’s reputation.
- Resource optimisation: efficient tax management allows profits to be re-invested in business growth.
- Improved credibility: a company that meets its fiscal obligations inspires confidence in investors, partners and customers.
Planning your company’s tax compliance for the whole of 2025 from the beginning of the year is the key to ensuring efficient management and avoiding setbacks. From corporation tax to IGI and CASS contributions, every aspect needs to be managed with precision.
Your tax advisors in Andorra
A specialist tax consultancy service is crucial for ensuring efficient compliance with fiscal obligations in Andorra. At Advantia Assessors, we offer comprehensive management that includes automated accounting processes to reduce errors, optimising the declaration of taxes such as IS and IGI, and applying specific tax benefits. We also implement systems to ensure that all deadlines, including those for taxes and mandatory audits, are met.
Our personalised tax advice ensures that your business maximises tax benefits, while you save time and focus on running your business. Rely on experts to provide you with peace of mind, efficiency and tax management tailored to your needs, thus improving the stability and profitability of your business.
Start the year with a strategic approach, and count on the support of professionals specialised in Andorran taxation. Get ready for a successful and well-managed 2025!