The income tax campaign for the fiscal year 2023 begins

This week has marked the launch of the income tax return campaign for 2023 in the Principality of Andorra, and what many people are wondering at this point is whether they are obliged to file personal income tax or whether, on the contrary, the law does not require them to do so in their specific case.

At Augé Legal&Fiscal, we wanted to provide clarity on the matter and very precisely outline which individuals who are fiscal residents in Andorra must submit their tax return on time and in the correct manner, that is, between April 2nd and September 30th, 2024, regarding their global income for the year 2023.

Fundamentally, we must highlight that those taxpayers who only obtain income from work or capital income that is exempt (that is, work income of up to €24,000 plus the corresponding CASS for the worker and movable capital income of up to €3,000) are not obliged to file the 300 form for IRPF declaration.

However, taxpayers who have received income from work or movable capital income are obliged to file the return if these incomes have not been subject to the obligation to make advance payments by the paying entities.

On the other hand, all those taxpayers who are directors of Andorran companies, even if they have not obtained any income, are also obliged to carry out the corresponding IRPF declaration.

For the rest of the cases, the taxpayer will be obliged to submit the return. However, even though they must make the declaration, they will not be obliged to declare on form 300:

• Exempt incomes nor capital incomes that have been subject to withholding or advance payment for this same tax.
• Labor incomes that have been subject to withholding or advance payment for personal income tax unless from these there is still an amount to be paid and, except when the taxpayer has received other incomes that must be integrated into the general base.
• Income from real estate capital that, together with labor income, amounts to less than €24,000.
• Incomes that have already been taxed abroad and that have entitled the application of a deduction to eliminate double international taxation and that, from its application, has resulted in a tax payment amount of 0. However, it should be noted that it is necessary to report on form 300-D the nature of the income and the country it comes from.

If you find yourself among the cases exposed or if you have reasonable doubts about whether or not you should carry out the personal income tax declaration for the year 2023, we suggest you contact our tax experts at the email info@augelegalfiscal.com and we will get in touch with you immediately to provide you with our professional assistance.