(February 5, 2015)

On February 5, 2015 both the Governments of Switzerland and Liechtenstein have issued press releases announcing that both countries have concluded negotiations on a new Double Taxation Agreement (DTA) on income and on capital. Now the required procedures will begin in both countries for the signing of the agreement. In their respective press releases both countries state that they expect the signing of the agreement to occur in the summer of 2015. Both countries also state that they expect the DTA to have effect as of January 1, 2017.

 

The DTA for which the negotiations have now been concluded replaces the current agreement of June 22, 1995 between Switzerland and Liechtenstein on various tax issues. The existing agreement however only governs the taxation of certain income, whereas the DTA regarding which the negotiations have now been concluded is a DTA on income and on capital.

 

Although both countries state that the text of the DTA will be published when the DTA has been signed, the press release as issued by Liechtenstein states that the most important matter that has been solved is the avoidance of double taxation where it regards withholding taxes.

 

According to the press release as issued by the Government of Liechtenstein the DTA will limit the interest withholding tax to 0%. The press release also states that for qualifying participations the dividend withholding tax will be limited to 0%. According to the press release for portfolio participations and for dividends received by individuals the dividend withholding tax will be limited to 15%.

 

Click here for the English version of the press release as issued by the Swiss Government.

 

Click here for the press release as issued by the Government of Liechtenstein, which is drafted in the German language.

 

 

 

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