Employer Tax Contributions

Tax Type	Rate	Base
Social Security (CASS) - General Branch	10.5%	Gross Salary
Social Security (CASS) - Retirement Branch	6.5%	Gross Salary
Personal Income Tax (IRPF) Withholding	Progressive (0-10%)	Employee's Annual Income
Non-Resident Income Tax (IRNR) Withholding	10%	Gross Payment to Non-Residents

Filing & Compliance

• CASS contributions are due by the last day of the month following salary payment.
• IRPF withholdings are paid monthly or quarterly, typically within the first 20 days of the month following the payment period.
• Employers must submit an annual declaration summarizing salaries and IRPF withheld by early in the year (e.g., end of February or March) following the tax year.

In Andorra, employee tax deductions primarily consist of income tax and social security contributions.

Income Tax

• Tax Rates and Brackets: Andorra's income tax system is progressive. As of 2025, the first €24,000 of annual income is tax-exempt. Income between €24,001 and €40,000 is taxed at 5%, and any income above €40,000 is taxed at 10%. This information is valid as of today, February 5, 2025, and might change in the future.
• Withholding Tax: Employers are responsible for deducting income tax directly from employee salaries and remitting it to the government. The withholding rate is based on the employee's income from the previous tax year and can range from 1% (for incomes between €30,000 and €40,000) up to 7% (for incomes above €150,000).
• Deductions and Allowances: Several deductions can reduce taxable income, including allowances for rent/accommodation, dependent family members, child support, and pension fund contributions. Employees can also deduct their social security contributions and up to €400 (3% of their income) for general expenses.
• Filing and Payment: The personal income tax declaration must be filed and paid between April 1st and September 30th of the year following the reporting period. Individual tax returns are required, and joint filing is not permitted.

Social Security Contributions (CASS)

• Employee Contributions: Employees contribute 6.5% of their gross salary to the CASS.
• Deductibility: The employee's CASS contributions are deductible from their taxable income.

General Tax Information

• Tax Year: Andorra's tax year aligns with the calendar year, running from January 1st to December 31st.
• Double Taxation: Andorra has double taxation treaties with several countries, allowing residents to deduct taxes paid abroad from their Andorran tax liability.
• Tax Residency: Individuals are generally considered tax residents if they spend more than 183 days in Andorra during a calendar year.

It is important to note that tax laws and regulations are subject to change. For the most up-to-date information, consulting with a tax advisor or referring to official government sources is recommended.