3 Jun 2013

Andorra to introduce personal income tax

8:00 am on 3 June 2013

Andorra is to introduce a tax on personal income for the first time. The principality is under pressure from its neighbours to tackle tax evasion.

Prime minister Antoni Marti has told President Francois Hollande of France that he will introduce a bill before 30 June.

No income tax is currently applied to individuals or corporations in Andorra, which is situated in the Pyrenees between France and Spain.

According to the Mr Hollande's office, the principality will "gradually meet international tax standards".

EU finance ministers want to start talks with Andorra, Switzerland, Liechtenstein, Monaco, and San Marino about swapping bank account information.

The BBC reports tax evasion costs EU members 1 trillion euros per year and some Members of the European parliament want a Europe-wide blacklist of tax havens.