Andorra Signs Addendum to International Tax Information Exchange Agreement (CRS MCAA) to Update Existing Mechanisms
Andorra la Vella, November 27, 2024 – Andorra has signed an addendum to the Multilateral Competent Authority Agreement (MCAA) on the Automatic Exchange of Financial Account Information (CRS), a significant step towards enhancing international tax cooperation.
The MCAA is a key agreement under the CRS framework that facilitates the automatic exchange of tax information among participating jurisdictions. It aims to combat tax evasion and ensure the proper taxation of multinational businesses and individuals.
The addendum signed by Andorra updates the existing provisions of the MCAA, incorporating the latest international standards and best practices in tax information exchange. It provides for the following enhancements:
- Expanded scope: The addendum expands the scope of reportable financial accounts to include additional types of income, such as dividends and capital gains.
- Enhanced data quality: The addendum introduces new measures to improve the quality and accuracy of exchanged information, ensuring its usability by tax authorities.
- Simplification of reporting: The addendum simplifies the reporting process for financial institutions, reducing their compliance burden.
- Increased transparency: The addendum promotes transparency and accountability by requiring participating jurisdictions to provide regular reports on their implementation of the CRS.
Andorra’s signing of the addendum demonstrates its commitment to international tax cooperation and its recognition of the importance of combating tax evasion. The country has a long history of transparency and compliance in financial matters, and this move further strengthens its position as a responsible player in the global financial system.
The addendum is expected to enter into force in Andorra on January 1, 2026. Once effective, it will enhance the country’s ability to exchange tax information with other participating jurisdictions, facilitating the identification of tax evasion and promoting fair taxation.
Andorra’s signing of the addendum is a positive development for the international community, as it contributes to the efforts to create a more equitable and transparent global tax landscape. The country’s commitment to tax cooperation sets an example for other jurisdictions to follow, paving the way for a more just and sustainable tax system worldwide.
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Govern Andorra a new article on 2024-11-27 09:59 titled “Andorra signa l’addenda a l’acord internacional d’intercanvi d’informació fiscal (CRS MCAA) per actualitzar els mecanismes existents”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
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