Andorran Government Approves Draft Tax Reform Bill Including 30% of EBITDA Interest Limitation and 3% Minimum Effective Tax Rate

The Andorran government has announced the approval of a draft tax reform bill. Key reform measures include:

• A 30% of EBITDA interest deduction limitation in line with BEPS Action 4, including:
  • a EUR 500,000 safe harbor, with excess interest expenses allowed to be carried forward to subsequent years; and
  • an exemption from the restriction for companies in the banking, credit, and insurance sectors, as well as stand-alone entities;
• Measures for the exchange of tax agreements (rulings) in lin…