Innovations in the presentation of financial statements and corporate income tax

Innovations in the presentation of financial statements and corporate income tax

During a press conference held in June 2021, the Minister of the Presidency, Economy and Enterprise, Jordi Gallardo, and the Minister of Finance and Spokesman, Eric Jover, presented the new initiative to simplify the procedures for the filing of accounts, taxation and statistical data. Until now, these had to be carried out individually, submitting the data to the different departments in charge. With this reform, they propose to unify these formalities by submitting them in a single document.



At the same time, with this initiative to simplify procedures, with the arrival of the new tax portal, they foresee the modernization of the presentation of these procedures, since previously, the annual accounts had to be presented in person with the option of being able to do it virtually. With the planned changes, they will have to be filed only through the new tax portal.

At the end of March 2022, the M.I. Govern d’Andorra, approved the amendments to the Regulations of the Companies and Limited Liability Companies Law, the Regulations of the Registry of the Deposit of Accounts, the General Accounting Plan, the Regulations of the Corporate Tax, as well as the filing of the declaratory forms for corporate tax and income tax of non-resident taxpayers. Likewise, on April 6, 2022, they were published in the BOPA.

With these amendments, the exemption for entrepreneurs with an annual total income of less than €150,000 is eliminated, making all entrepreneurs who carry out an economic activity, from now on, obliged to file annual accounts.



As for the modifications related to the filing of annual accounts, the simplified model disappears, leaving only the new abbreviated models (forms: 805B) and the new normal models (forms: 805ª). These forms have been prepared jointly by the three departments so that the documents, such as the annual report of the annual accounts (805B3 or 805A5), include elements for the statistics department, which in the end eliminates the surveys of economic activities that until now were carried out periodically.

In the modifications corresponding to the IS (Corporate Income Tax) for legal entities, forms 850 and 800 will now correspond to forms 805P.



In addition, in order to complete these new procedures, all shareholders, members of the board of directors and/or administrators, as appropriate, must have a personal digital certificate to be able to sign the documents (certificate of approval of the annual accounts and other documents that form part of the ACs) with an electronic signature. This certificate can be requested in person and in person at the Andorran Government’s formalities department. Once the credentials have been obtained, they can sign any document in PDF format directly on the official website or through the proposed desktop application.



In summary, although these changes will simplify and streamline the formulation and filing of corporate taxes and the annual accounts of individuals and legal entities, they will considerably affect the organization of the different departments in charge.