Economic opening at the core of future strategies

ECONOMIC OPENING

TRANSPARENCY AND COOPERATION IN TAX MATTERS

EU MONETARY AGREEMENTMONEY LAUNDERING

PREVENTION

TAX FRAMEWORK

Success factors

RECOGNIZABLE

STANDARIZED

ADAPTED TO THE ANDORRAN REALITY

1

2

3

TaxFramework

SUSTAINABLE PUBLIC FINANCES

PUBLIC DEBT <40% GDP

ANNUAL DEFICIT <1% GDP

Adaptation of the public accounts to NICSP - 2017

% Debt/GDP (2006-2016)

Total Public Debt Annual Variation

50

40

30

20

10

0

-10

-20

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Tax Framework

Tax Framework

RECOGNIZABLE

IRNR (Tax on Non Residents) - 2011

IS (Tax on Companies) - 2012

IRPF (Tax on Personal Revenues) - 2015

DIRECT TAXES

ADAPTED AND COMPETITIVE

GENERAL NOMINAL RATE 10%

Spain

Portugal

Luxembourg

Liechtenstein

France

Malta

Arab Emirates

Tax Framework

STANDARIZED

DTA AGREEMENTS

Transparency and cooperationin Tax matters

EU

RECOGNIZABLE

STANDARIZED

EU Savings tax directive

2005-2017

Automatic Exchange of

Information

2018

Code of conduct

OECD Global Forum

Information exchange

upon request

Automatic Exchange

MCAA – 2018

Inclusive Framework

MLI – 2017 - BEPS

RECOGNIZABLE

STANDARIZED

Largely compliant

USA

RECOGNIZABLE

IRS - 2001General method

Fulfilled by entities

Andorran entities are

Qualified Intermediaries (QI)

FATCA2018

IT DD - EU / OECD Model

Money laundering prevention

RECOGNIZABLE

Supervisory body

UIFAND

New Law on money laundering 2017

Criminal code modification

Inclusion of Tax Crime

NRA

National Risk Assessments - 2016

STANDARIZED

MONEYVAL – GAFI

Completed and approved 4th

Moneyval evaluation

December 2015

Beginning 5th

Moneyval evaluation

March 2017

Monetary agreementFinancial sector regulation

EU Monetary agreement - 2012

Money laundering preventionSEGMENT 1 18 months

Fraud prevention and currency counterfeitSEGMENT 2 18 months

Euro banknote and Coin rulesSEGMENT 3 12 months

Reporting ECBSEGMENT 5 4 years

IOSCOSEGMENT 6 18 months – Members from 2013

Financial banking legislationSEGMENT 4

80%Payment methods 4 to 6 years

Banking regulation 4 to 6 years

Solvency, Accounting and Guarantee funds 4 to 6 years