Andorra vs Philippines
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฆ๐ฉ Andorra โ Parish Taxes & Local Levies
Andorra's 7 parishes (parrรฒquies) levy communal taxes including building and land taxes, commercial licence fees, and local service charges. Andorra only introduced a personal income tax (IRPF) in 2015 and corporate tax (IS) in 2012. This micro-state in the Pyrenees between France and Spain remains a significant tax haven due to very low VAT and no inheritance or capital gains tax. It has an Association Agreement with the EU.
๐ต๐ญ Philippines โ Local Government Unit (LGU) Taxes
The Philippines' 82 provinces, 146 cities, and 1,488 municipalities levy business taxes (1%โ2% of gross receipts), real property tax, and fees. Cities can levy local business taxes at their own rates within national caps. The local business tax is a major compliance burden for businesses operating across multiple LGUs. The BIR (Bureau of Internal Revenue) administers national taxes. The Create Act (2021) significantly reformed corporate income tax rates.
Andorra vs Philippines: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ต๐ญ Philippines has a higher top income tax rate (0โ10% vs 0โ35%). ๐ฆ๐ฉ Andorra is more favourable for high earners.
๐ VAT/Sales Tax: Philippines has a higher consumption tax (4.5% vs 12%).
๐ข Corporate Tax: ๐ฆ๐ฉ Andorra offers a lower corporate rate (10% vs 25%), which can influence business location decisions.
๐ Capital Gains: ๐ฆ๐ฉ Andorra taxes investment gains at a lower rate (0% vs 15%), benefiting investors.