In this article we expose everything that should be known about the Income of Natural Persons (IRPF) in Andorra this year 2019.
On April 1, the period to show the 2018 IRPF statement was started, which will be filmed until September 30, 2019. This is considered a new task in Andorra, since it is the fourth exercise that is carried out here.
This is the reason why this article has been created, since we want to help clarify doubts and some concepts regarding IRPF.
Personal income tax is the income tax of natural persons that are considered by tax residents in Andorra. Through this, each income related to the tax is specified regardless of where they were generated and the state in which the person paying is established.
A taxpayer is a natural person who meets any of the following conditions:
Border workers are not considered tax residents, since they are transported daily from Spain or France to Andorra and were hired by Andorra tax companies.
That obtained by the border will be subject to personal income tax, as well as they may request to apply to the special regime of this tax.
They are allowed to make an income tax statement:
Taxpayers must declare according to their amount and their personal and family conditions.
This declaration must be submitted between April 1 and September 30 of the fiscal year next to which it is the subject of declaration.
Individuals who only acquire work income, movable capital that have been withheld or exempt income are not required to submit the declaration.
This must be individual and the person will commit to submit a statement that is within the deadlines determined above. This, mainly, must calculate the income from the General Base, such as economic activity and labor; and you must also calculate the savings base, which includes movable capital, capital losses and profits.
Once the tax exempt minimums have been deducted, the tax rate will be applied to each base. Taxation for personal income tax is 10%. However, for income between 24,000 and 40,000 euros this will be 5%
Different deductions may be applied according to the resulting fee.
The reduced settlement fee for the cancellation of advances made during the year will give the tax to be paid according to each case, which is called a differential fee.
The relevant documents are needed. In this way, information is needed regarding the worldwide income obtained, such as: