Andorra Releases Binding Consultation Explaining Tax Treatment of Tradeable Financial Assets

The Andorran Government Dec. 23, 2021, issued Binding Consultation No. CV0230-2021 explaining the tax treatment of unrealized gains on tradeable financial assets. The taxpayer was a consulting company which held a portfolio of financial assets including stock in various companies. The taxpayer sought clarification as to the valuation of these assets for tax purposes. The consultation clarified that: 1) tradeable financial assets are initially valued at cost; 2) tradeable assets are subsequently valued at their fair value; and 3) the assets in this case will be valued for tax purposes according to the accounting regulations. [Andorra, Government Portal, 12/23/21]

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