On March 4, 2016 the Government of the Principality of Liechtenstein issued a press release announcing that Liechtenstein is getting ready to implement BEPS.

In the press release the Government of Liechtenstein refers to the forum to accompany implementation of the BEPS measures as established by the OECD and the G20 in February 2016. In the press release the Government of Liechtenstein states that it supports the OECD's efforts to create such a set of instruments.

In the press release the Liechtenstein Government also announces that it has mandated the Fiscal Authority to prepare a consultation report on the adaptation of the Tax Act. According to the press release this consultation is to include the following points on the implementation of measures against Base Erosion and Profit Shifting (BEPS):

·       Introduction of the correspondence principle for dividends within corporate groups to avoid double non-taxation

·       Introduction of country-by-country reporting for multinational enterprises with an annual consolidated group revenue equal to or exceeding EUR 750 million

·       Transfer pricing rules (documentation requirement for large companies)

·       Transitional provision for existing IP box until end of 2020

·       Inclusion of the term "ruling" along with cost and legal consequences

The press release concludes by stating that it is expected that the adaptation of the Tax Act is to be submitted to Liechtenstein Parliament this year.

Click here to be forwarded to the press release as issued on March 4, 2016 by the Government of the Principality of Liechtenstein.

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