News Overview

The agreement between Liechtenstein and Jersey for the elimination of double taxation and prevention of tax evasion and avoidance basically follows the OECD Model Tax Convention (2014) and takes into account the results of the BEPS project from 2015 as well as parts of the new OECD Model Tax Convention (2017). The agreement is applicable for tax years from 2019.

With its decision of 2 October 2018 the EU Economic and Financial Affairs Council (ECOFIN) removed Liechtenstein from the so-called “Grey List”. The EU thereby confirms that Liechtenstein complies with the EU criteria of tax transparency, fair business taxation and the implementation of the BEPS minimum standards.

This CONFIDA Info provides an overview of the proposed amendments to the Tax Act (SteG), in particular, the introduction of specific anti-avoidance rules in connection with the tax exemption of dividends and capital gains from participations, the notional interest deduction, and the elimination of the asymmetric treatment of capital gains and losses from participations. The details of the bill are discussed in the Government's Report and Proposal (BuA) No. 35/2018.

The OECD has developed a new approach to Transfer Pricing Documentation under the BEPS project. The statutory general requirement to document transfer prices was already introduced in Liechtenstein on 1 January 2017. The Tax Ordinance now regulates how transfer prices are to be determined and how their documentation must be prepared. The Tax Ordinance entered into force on 1 January 2018.