Liechtenstein

Corporate - Significant developments

Last reviewed - 18 June 2020

The following anti-avoidance rules have been introduced as of 13 July 2018 (most of which are applicable as of 2019):

  • Dividend income and capital gains deriving from investments in foreign legal entities are not tax-exempt for income tax purposes anymore if more than 50% of the total income of the foreign legal entity consists of passive income and its taxable income is subject, directly or indirectly, to low taxation. This new rule is applicable as of 2019 for participations established as of 2019 and as of 2022 for participations established before 2019.
  • The notional interest deduction for transactions between related parties will be restricted for the first time as of fiscal year 2019. The notional interest deduction will be added to the taxable income if the investment is not financed by equity in the parent company or if transactions with related parties are purely tax motivated.
  • Realised and unrealised losses from participations are no longer deductible as of tax year 2019.