Liechtenstein Parliament Ratifies TIEA With US

by Ulrika Lomas, Tax-News.com, Brussels

02 July 2009

Approved unanimously by Liechtenstein’s Parliament, the country’s Tax Information Exchange Agreement (TIEA) with the US, signed in December 2008, is due to enter into force on January 1, 2010.

Liechtenstein’s new Law on Administrative Assistance in Tax Matters (US TIEA Act) is designed to incorporate the individual provisions contained in the agreement into the country’s existing law.

Under the terms of the agreement, an exchange of information will only be granted upon receipt of a justified request submitted by the US tax authorities, which may be determined by a Liechtenstein court.

Designed to provide swift and efficient international administrative assistance, the amendment to the country’s constitution demonstrates Liechtenstein’s commitment to fully cooperating with information exchange in tax matters.

Delighted with the Parliament’s recent decision, Liechtenstein’s Prime Minister Klaus Tschütscher emphasised that adoption of the tax agreement has shown that Liechtenstein is “able to follow words with deeds".

"Liechtenstein is proving itself to be a reliable treaty partner, not only vis-à-vis the United States, but also with a view to the further agreements we want to conclude for the purpose of implementing the OECD standards," the Prime Minister continued.

With entry into force of the agreement, the QI status of Liechtenstein banks will also be extended by a further six years.

It is anticipated that the law will be passed in September.

Recommended