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Liechtenstein, China Initiate TIEA Talks

Monday, July 16, 2012

Liechtenstein’s Deputy Prime Minister Martin Meyer has recently held talks with Chinese delegates in Vaduz on a bilateral tax information exchange agreement (TIEA) between the Principality and China, aimed at strengthening future tax cooperation.

The Chinese delegation were also updated on the current framework conditions of the Liechtenstein financial centre during the course of their visit.

Commenting on the outcome of the discussions, Deputy Prime Minister Meyer underlined his confidence that the conclusion of a tax information exchange agreement with China would be the start of comprehensive tax cooperation between the two countries.

In a next step, negotiations on a double taxation agreement (DTA) could be initiated, the Liechtenstein minister explained, highlighting the already strong economic relations with China, which could “without doubt be further extended and deepened”. A DTA would serve to ensure legal certainty in this relationship and at the same time reduce barriers to cross-border services and investment, Meyer added.

Liechtenstein recognized implementation of the Organization for Economic Cooperation and Development (OECD) standards on transparency and information exchange in tax matters with its Declaration of March 12, 2009, Meyer ended.

The Liechtenstein government has also recently passed an amendment to the UK TIEA Ordinance, designed to set clear parameters for the relevance of business relationships.

According to the Liechtenstein government, the existing ordinance, which defines under which criteria a financial intermediary may consider a customer relationship to be relevant under the law, contains several imprecise legal terms that are “open to interpretation”.

Consequently, after consultations with the associations and based on the UK TIEA Act, the government adopted a clarification to the legislation for the relevance of new business relationships.

Liechtenstein’s Prime Minister Klaus Tschütscher explained that: “As a result, concrete threshold values are now used to establish clear criteria for confirmation of relevance within the framework of the Liechtenstein Disclosure Facility (LDF).”

The drafting of a confirmation of relevance by a financial intermediary in Liechtenstein is a criterion for participation in the LDF. A differentiation is thereby made between banks, trust companies and insurance companies.

The LDF is a unique and time-limited opportunity that allows British taxpayers to declare assets that have not yet been declared and that are liable to taxation in the United Kingdom under particularly reasonable conditions.

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The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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