The Swiss Federal Council has adopted a dispatch on the new double taxation agreement (DTA) with Liechtenstein. The new DTA with Liechtenstein is more comprehensive than the previous one, and is to replace it.
The Swiss Federal Council has adopted the dispatch on the new double taxation agreement (DTA) with Liechtenstein and on its implementation, according to a press release. It has been submitted to Parliament for approval. The Federal Council has also adopted a dispatch on the revision of the DTA with Norway. The new DTA with Liechtenstein was signed on 10th July 2015. The press release explained that the DTA is a comprehensive agreement for the avoidance of double taxation on income and capital. It will replace the current agreement from 1995, which only covers the taxation of certain income.
The new DTA governs in particular the taxation of old age and survivors' insurance (AHV) pensions. It will eliminate the current double taxation of AHV pensions from Liechtenstein for people who live in Switzerland. For cross-border commuters, the respective state of residence will continue to retain the right of taxation. Now also governed by the DTA is the taxation of dividends, interest and royalty payments. The DTA contains solutions for this income, which are comparable to those recently concluded by Switzerland in other agreements.