All natural persons whose residence is in Liechtenstein or who
stay in Liechtenstein for purposes of employment are required to pay asset and income taxes. General
partnerships and limited partnerships are also subject to asset and income taxes, as well as legal persons
and trusts that are not subject to company taxes (capital and profit taxes and special company taxes).
The tax liability of these legal persons arises from their domicile in Liechtenstein. Liechtenstein
asset and income tax law is governed by the principle of family taxation, i.e., married persons are
treated as a unit for purposes of asset and income taxes and their tax liability is calculated jointly.
Family taxation also includes minor children who live in a joint household with their parents. The
entirety of moveable and immoveable assets is subject to asset tax. All earnings consisting of money
or monetary equivalents are subject to income tax, with the exception of earnings on assets on which
asset tax must be paid. Earnings therefore include all
periodic and non-recurrent income such as earnings from employment and self-employment, capital gains,
annuities, pensions, daily allowances from unemployment, health, and accident insurance, as well as
lump-sum compensation. The Tax Act provides for different types of deductions (production costs, social
insurance) as well as certain tax-exempt amounts. Taxes
are assessed on the basis of taxable assets and taxable income. The tax rate is determined annually
by Parliament in fractions or multiples of the legal tax unit (0.1% for taxable assets, 2% for taxable
earnings); it is currently 54% of the legal tax unit. Tax
progression surcharges of 5% to 425% are added to the simple national tax, i.e., the amount of asset
and income tax calculated on the basis of the tax rates mentioned above, depending on the amount of
the tax. Municipalities add additional surcharges of at most 200% to the overall national tax liability. Assuming
a municipal tax surcharge of 200%, the minimum and maximum tax rates are as follows: at least 0.162%
and at most 0.8505% for asset tax; at least 3.24% and at most 17.01% for income tax. Asset
and income taxes are assessed at the end of the tax period on the basis of annual tax returns by the
relevant municipality of residence or domicile. A special
characteristic of Liechtenstein income tax law should be mentioned: For the purposes of securing taxes,
employers of persons employed in the Principality of Liechtenstein are required to deduct a basic amount
of the income tax from monthly salary and wage payments and forward it to the Liechtenstein Fiscal Authority
(payroll tax). Asset and
income taxes of natural persons  | 
