Liechtenstein, Hong Kong DTA Enters Into Force

by Ulrika Lomas, Tax-News.com, Brussels

18 March 2011

Following ratification by both treaty partners, the bilateral double taxation agreement (DTA) in place between Liechtenstein and Hong Kong entered into force on March 16.

The DTA with Hong Kong marks the entry into force of the third such comprehensive agreement, the Liechtenstein administration notes.

According to the principality’s administration, the agreement, which was signed in Vaduz on August 12, 2010, is in accordance with current international standards, and is based to a large extent on the Organization for Economic Cooperation and Development’s (OECD) Model Convention. The principality’s tax administration is the competent national authority responsible for application of the agreement.

The Liechtenstein administration maintains that the agreement is to be seen within the context of the country’s new financial centre and fiscal policy, as expressed in the Liechtenstein Declaration on March 12, 2009. With the agreement, Liechtenstein pledges to adhere to the international OECD standards on transparency and information exchange in tax matters, it notes, while emphasizing the government’s commitment to building a network of DTAs.

Commenting on the entry into force of the agreement, Liechtenstein’s Prime Minister Klaus Tschütscher stated that the country is continuing on the path of international cooperation in tax matters, and is creating potential and legal certainty in its trade relations with a key partner in Asia. The government is committed to further extending the network of DTAs in the interests of the country’s economy, the Prime Minister concluded.

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