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Economy and Banking Sector of Liechtenstein

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in Liechtenstein: 0.0 - 0.0%

Withholding tax rates applied on payments of interest and dividends in Liechtenstein are shown in Table 1.

Dividends Interest
Natural person, resident 0.0 %0.0 %
Natural person, non-resident 0.0 %0.0 %
Table 1. Withholding tax rates in Liechtenstein.

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Liechtenstein: 10 Signed Agreements

Liechtenstein signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):

 Austria
 Germany
 Hong Kong
 Luxembourg
 San Marino
 Switzerland
 United Kingdom
 Uruguay

There are also several agreements between Liechtenstein and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 1 January 2013 of signing the agreement is given in brackets):

 Malta (Sep 2013)
 Singapore (Jun 2013)

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 26 Signed Agreements

Liechtenstein signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):

 Andorra
 Antigua and Barbuda
 Australia
 Canada (Jan 2014)
 Denmark
 Faroe Islands
 Finland
 France
 Germany
 Greenland
 Iceland
 Ireland
 Japan
 Monaco
 Netherlands
 Norway
 Saint Kitts and Nevis
 Saint Vincent and The Grenadines
 Sweden
 United Kingdom
 United States

There are also several agreements between Liechtenstein and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 1 January 2013 of signing the agreement is given in brackets):

 Belgium
 Guernsey (Jun 2014)
 India (Mar 2013)
 Mexico (Apr 2013)
 South Africa (Dec 2013)

Automatic Exchange: Starts in September 2017

Liechtenstein signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.

Automatic Excnange: 51 Bilateral Agreements to Receive Information

Liechtenstein has signed bilateral agreements with 51 jurisdictions to automatically receive information:

 Argentina
 Australia
 Austria
 Belgium
 Bulgaria
 Canada
 China
 Croatia
 Cyprus
 Czech Republic
 Denmark
 Estonia
 Faroe Islands
 Finland
 France
 Germany
 Gibraltar
 Greece
 Greenland
 Guernsey
 Hungary
 Iceland
 India
 Ireland
 Isle of Man
 Italy
 Japan
 Jersey
 Korea, Republic of
 Latvia
 Lithuania
 Luxembourg
 Malaysia
 Malta
 Mauritius
 Mexico
 Monaco
 Netherlands
 New Zealand
 Norway
 Poland
 Portugal
 Romania
 San Marino
 Seychelles
 Slovakia
 Slovenia
 South Africa
 Spain
 Sweden
 United Kingdom

Automatic Excnange: 58 Bilateral Agreements to Send Information

Liechtenstein has signed bilateral agreements with 58 jurisdictions to automatically send information:

 Anguilla
 Argentina
 Australia
 Austria
 Belgium
 Belize
 Bermuda
 British Virgin Islands
 Bulgaria
 Canada
 Cayman Islands
 China
 Croatia
 Cyprus
 Czech Republic
 Denmark
 Estonia
 Faroe Islands
 Finland
 France
 Germany
 Gibraltar
 Greece
 Greenland
 Guernsey
 Hungary
 Iceland
 India
 Ireland
 Isle of Man
 Italy
 Japan
 Jersey
 Korea, Republic of
 Latvia
 Lithuania
 Luxembourg
 Malaysia
 Malta
 Mauritius
 Mexico
 Monaco
 Netherlands
 New Zealand
 Norway
 Poland
 Portugal
 Romania
 Saint Vincent and The Grenadines
 San Marino
 Seychelles
 Slovakia
 Slovenia
 South Africa
 Spain
 Sweden
 Turks and Caicos Islands
 United Kingdom

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Liechtenstein
IGA in effect since 19 May 2014, Model 1

Liechtenstein has FATCA agreement with the U.S. in effect since 19 May 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in Liechtenstein are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Liechtenstein's financial accounts hold in U.S. financial institutions will be reported to Liechtenstein's authorities.

Further Information