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Liechtenstein, UK DTA In Force

Wednesday, January 2, 2013

Following the exchange of relevant notifications, the agreement pertaining to the avoidance of double taxation and tax evasion in the area of taxes on income and on wealth between Great Britain and Northern Ireland and the Principality of Liechtenstein has now entered into force.

According to the Liechtenstein government, the agreement applies to individuals resident in one or both treaty states.

The Liechtenstein government explains that the double taxation agreement (DTA) between the Principality and the UK guarantees mutual interests and meets the needs of both countries, noting that the accord will serve to promote and to secure cross-border investments between both countries. The treaty offers individuals taxable in Liechtenstein significant advantages as well as clarity vis-à-vis their tax treatment in the UK, the government adds, pointing out that these advantages also apply to legal entities, including trusts and trust companies, foundations, and investment funds.

For withholding taxes, the accord will apply from February 1, 2013. As regards income and capital gains taxes, the DTA will apply in the UK from April 6, 2013. In Liechtenstein, the provisions relating to income, profit and wealth taxes will apply from January 1.

The Liechtenstein government highlights the fact that the bilateral agreement focuses on the avoidance of double taxation in the area of taxes on income and on wealth, underscoring that both states attached great importance to concluding an accord based on the international Organization for Economic Cooperation and Development standard. At the same time, the agreement takes into account the interests of both countries and the common membership of the European Single Market, the government says.

Emphasizing that the special, close relationship between the UK and Liechtenstein is based on the tax agreements concluded back in 2009, when both countries agreed to far-reaching cooperation in tax matters within the framework of the Liechtenstein Disclosure Facility (LDF) and the Liechtenstein compliance requirements, the government explains that the LDF enables UK taxpayers to voluntarily declare their past tax liabilities relating to assets located in Liechtenstein.

Welcoming the entry into force of the DTA with the UK, Liechtenstein’s Prime Minister Klaus Tschütscher maintained that this is the right way, which promises a prosperous future, noting that clarity and stability in tax matters form in this agreement the corner points of cooperation with Great Britain.

Commenting, Director of Liechtenstein’s Office of International Financial Affairs Katje Gey emphasized that the DTA takes into consideration the concerns of market participants and complements the existing agreements with a key element. Liechtenstein is once again demonstrating that it is a reliable partner and that its industry and financial centre are connected to the world’s largest network of tax treaties, Gey ended.

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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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