Liechtenstein supports the international BEPS project to prevent tax avoidance in multinational companies. The country is now developing the necessary national legislative changes.
The government has mandated the Liechtenstein tax authority to prepare a consultation report outlining how the Tax Act needs to be adjusted in light of the BEPS project. According to a news release, the plan is to submit the measures on preventing tax avoidance in multinational companies to the parliament (Landtag) in 2016 for approval.
The country's plans are being taken in the context of plans by the OECD and G20 countries to make base erosion and profit shifting (BEPS) more difficult. Internationally recognised regulations should protect the countries tax base and provide legal certainty for taxpayers. Liechtenstein stands by these efforts to take into account new global standards in tax law but emphasises the importance of a level playing field among all countries.
The consultation report will address the need to adapt the Tax Act in five specific areas: introducing the corresponding principle for dividends; introducing financial reporting by countries for companies of a certain size; a regulation with respect to transfer pricing; transitional arrangements for existing licence boxes until the end of 2020; and including the term ruling for all costs and legal consequences.