Page 73 - Economic report 2018

The breakdown by tax figures demonstrates GDP, ACCRUED TAXES AND
that the rise in the tax burden is due to the TAX BURDEN Chart 8.3
strong growth in current taxes on income and
property (21.1%), although in 2018 there was
no significant regulatory change in the national
tax system. This trend can be explained, in turn,
by the increase in revenue from corporate tax
and income tax (IRPF). The increase reflects a
positive trend in economic activity in the year
and was favoured by a positive base effect,
as both sources of income suffered a serious
reduction in 2017. Another factor that also
seems to have contributed is the improved
management, collection and inspection of these GDP Accrued taxes Tax burden (right axis)
taxes, as part of the gradual consolidation of
the Andorran tax system. Source: Department of Statistics.

TAX BURDEN OF EUROPEAN COUNTRIES. 2017 - As % of GDP

71

Source: Department of Statistics and Eurostat.

that makes Andorra a tax-friendly country. In fact, TREND IN THE TAX BURDEN OF SOME EU
within the context of the EU-28, the only country with COUNTRIES - As % of GDP
a lower tax burden than Andorra is Ireland (23.5%).

Moreover, as occurred in Andorra, the average tax
burden of the EU and also Spain, France and other
countries with low taxation such as Luxembourg and
Netherlands, has displayed a rising trend in recent
years, from the lows seen in 2009, a situation largely
associated with the improvement in the economic The Andorran economy: general developments | VIII. The public sector
situation. As has been said, Ireland is a different case,
where the tax burden has fallen more than five GDP
points since 2009, which explains why it is the only
country in the EU with lower taxation than Andorra.
2009 2017

Source: Department of Statistics and Eurostat.