Thursday, June 14, 2012
The Principality of Liechtenstein and the United Kingdom (UK) have recently signed in London a bilateral double taxation agreement (DTA) between the two countries, due to enter into force on January 1, 2013.
According to the Liechtenstein government, the agreement safeguards the interests and meets the needs of both countries, while at the same time promoting cross-border trade.
The government explains that the treaty provides significant advantages to individuals liable to taxation in Liechtenstein as well as clarity regarding their tax treatment in the UK. These advantages also apply to legal persons, trusts, foundations, and investment funds.
During the signing, Liechtenstein’s Prime Minister Klaus Tschütscher and Britain’s Exchequer Secretary David Gauke both highlighted the fact that the bilateral DTA will serve to contribute to the further positive development of economic relations between the two countries, pointing out that the treaty also contains provisions pertaining to the exchange of information in accordance with current international standards.
Commenting on the accord in London, Liechtenstein’s Prime Minister Tschütscher said that the DTA will serve to meet the needs of the markets, which is “the best guarantee for success”.
Tschütscher insisted that Liechtenstein has once again shown that it is a “reliable partner”. The Principality’s industry and its financial centre are connected with one of the world’s largest network of tax agreements, he added, emphasizing that clarity and stability in tax matters form with this agreement the cornerstones of cooperation with the UK. Liechtenstein as a location has many advantages that are imperative in a new and transparent environment, the Prime Minister ended.
In addition to the DTA, Tschütscher also signed with the UK’s Permanent Secretary for Tax at HM Revenue and Customs (HMRC) Dave Hartnett a Third Joint Declaration to the government statement of August 11, 2009 (Memorandum of Understanding – MoU).
The Declaration confirms the success of the provisions contained in the MoU and their extension to April 5, 2016, including the unique and favourable conditions of the Liechtenstein Disclosure Facility (LDF).
Welcoming the signing, Liechtenstein’s Director of the Office of International Affairs Katja Gey explained that the LDF makes it possible for UK taxpayers to submit a voluntary disclosure for past tax liabilities due in the UK in respect of untaxed assets held in Liechtenstein.