Andorra has announced that it has ratified its income and capital tax treaty with Lithuania in its Official Gazette on 6 August, 2024.
The treaty is set to take effect once the necessary ratification instruments are exchanged, with its provisions applicable from 1 January of the year following its enactment.
This agreement aims to eliminate double taxation on income and capital, fostering closer cooperation between the tax administrations of both countries to prevent tax avoidance and resolve disputes effectively.
The agreement was signed by Gabrielius Landsbergis, Lithuania’s Foreign Minister, and Imma Tor Faus, Andorra’s Foreign Minister, on 17 April 2024, to strengthen economic ties and promote mutual investment between the two nations.
A tax treaty is a bilateral agreement between two countries designed to address the double taxation of both passive and active income for their citizens. These treaties typically define how much tax a country can impose on a taxpayer’s income, capital, estate, or wealth. An income tax treaty is also known as a Double Tax Agreement (DTA).
