The income tax treaty between Andorra and Luxembourg was signed on 2 June 2014.The treaty is the first of its kind between the two countries.
The treaty covers Andorran income tax, tax on income from economic activities, tax on income of nonresidents and real estate capital gains tax. It covers Luxembourg individual income tax, corporation tax, wealth tax and the communal trade tax.
Andorra applies the credit method for the elimination of double taxation, while Luxembourg generally applies the exemption method. However, in the case of dividend income and entertainer and sportspersons income, Luxembourg applies the credit method.
The treaty will enter into force once the ratification instruments are exchange, and will apply from 1 January of the year following its entry into force.
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