On 23 December 2020, Andorra published Law 16/2020 of 4 December 2020 on exceptional and urgent measures in response to the COVID-19 pandemic. The Law generally updates and extends prior relief measures for COVID-19, with some changes.

Relief measures provided in Law 16/2020 include the following:

• Taxpayers that are unable to pay their tax debts as a result of exceptional measures adopted as a result of the emergency caused by the COVID-19 pandemic may request the deferral or splitting of the tax debt, without guarantee requirements or late payment interest, even if the tax debt corresponds to withholdings, income on account, or tax penalties;
• The government is empowered to extend the deadline for the payment of the annual fee for the Register of Owners of Economic Activities beyond 30 June 2021 (would normally be due between 1 January and 30 June);
• The tax base for VAT is reduced by rental (lease) income not received due to rent relief measures for business premises where the activity on the premises has been suspended due to COVID-19 (75% rent relief provided through separate measures of Law 16/2020); and
• Rental (lease) income not received due to rent relief measures for business premises is excluded from the tax base for corporate tax, non-resident income tax, and personal income tax, while related expenses remain deductible.

Law 16/2020 enters into force on1 January 2021.