Liechtenstein Signs Two New TIEAs

by Ulrika Lomas, Tax-News.com, Brussels

12 November 2009

Liechtenstein has signed two further tax information exchange agreements containing the Organization for Economic Cooperation and Development (OECD) standard, on the sidelines of the recent European Council of Finance Ministers (Ecofin) meeting held in Brussels.

Liechtenstein’s Prime Minister Klaus Tschütscher attended the meeting to discuss the medium- and long-term sustainability of public finances, as well as strengthening international tax cooperation.

During the meeting, Liechtenstein reiterated its willingness to implement the current OECD standard as part of bilateral tax agreements and at the level of a multilateral agreement with the European Union (EU) and its member states.

At the beginning of the year, Liechtenstein offered to implement the OECD standard within the framework of negotiations on an anti-fraud agreement with the EU and all 27 of its member states, although this process has yet to be completed.

Liechtenstein also took the opportunity, on the sidelines of the meeting, to sign two OECD-compliant tax information exchange agreements with Belgium and the Netherlands. The administrative assistance agreements with the Netherlands and Belgium provide for an OECD-compliant, cross-border tax cooperation procedure governed by the rule of law. The treaty texts follows the OECD Model Tax Convention and provide for the exchange of information upon request.

Following the signing, Tschütscher announced: "Beyond today's conclusion of the agreements, we agreed talks with both countries to immediately begin negotiations about the conclusion of double taxation agreements."

It has also emerged that negotiations with additional countries, including Italy, Australia, Norway, Sweden, Finland, and Iceland, are at an advanced stage.

Liechtenstein’s government also aims to continue talks with several existing partners on additional OECD-compliant double taxation agreements and to assume negotiations with new partners.

"Our goal is to ensure legal certainty for clients and intermediaries as well as reliable and forward-looking framework conditions in tax matters," added Tschütscher.

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