Liechtenstein and Iceland have successfully concluded discussions on a double taxation agreement (DTA). The Liechtenstein tax authorities have already paraphrased the DTA.
Negotiations on a DTA began in autumn 2015, according to a press release. Thanks to the agreement, Liechtenstein and Iceland will be able to regulate the avoidance of double taxation and tax evasion on income and wealth. Factored into the agreement is that both countries belong to the European Economic Area (EEA). The agreement also determines how asset structures, investment funds, pension funds and charities are treated. An arbitration clause will come into effect should difficult double taxation cases arise.
The government news releases underlines that the initialed DTA is oriented towards the international OECD standard. It also takes into account the results of the BEPS project of the OECD and G20, which is directed against cross-border tax evasion. The text of the agreement will only be published after it has been signed.
As an updated list from the Liechtenstein tax authorities shows, Liechtenstein has already concluded double taxation agreements and tax information exchange agreements (TIEA) with well over 40 countries.