Enterprises operating a commercial business in Liechtenstein are
subject to capital and profit taxes. Foreign companies operating a branch in Liechtenstein are also
subject to the capital and profit tax requirement. The
basis for assessment of the capital tax is the paid-up capital stock, joint stock, capital share, or
initial capital as well as the reserves of the company constituting company equity. Taxes are assessed
at the end of the company’s business year (generally on 31 December). The tax rate for the capital tax
is 0.2%. Profit tax is assessed on the entire annual
net profit. Taxable net profit is the entire profit minus company expenditures (including write-offs
and provisions). The profit tax rate depends on the ratio of net profit to capital and lies between
7.5% and 15%. This tax rate may be increased by 1% to at most 5% depending on the relation between profit
distribution and taxable capital. The maximum profit tax is therefore 20%. Capital
and profit taxes are assessed at the end of the tax period by the Liechtenstein Fiscal Authority on
the basis of annual tax returns including supplements (balance sheet and income statement). Fund
management companies and investment undertakings in the form of an investment company are subject to
capital and profit taxes, from which the assets under management are exempt, however. The assets under
management are tax-free. Holding companies and domiciliary
companies domiciled in Liechtenstein must pay a capital tax of 0.1% of the paid-up capital or the assets
invested in the undertaking, but at most 1,000 francs per year. This minimum tax amount must be paid
in advance for the period of one year. In the case of foundations, the capital tax is reduced for assets
exceeding 2 million francs including reserves to 0.075%, and to 0.05% for assets exceeding 10 million
francs including reserves. Insurance undertakings under
the Insurance Supervision Act exclusively operating as captives pay a capital tax of 0.1% on the company's
equity. The tax rate for equity exceeding 50 million francs is reduced to 0.075% and for equity exceeding
100 million francs to 0.05%. Insurance undertakings
operating both as captives and also for third parties are subject to the capital and profit taxes in
accordance with articles 73 to 81 for the part arising from the insurance of third parties. Company
taxes of legal persons  | 
