Liechtenstein

Anti-avoidance rules for dividend income and capital gains

The anti-avoidance rules on dividend income and capital gains apply as follows:

• Dividend income and capital gains deriving from investments in foreign legal entities are not tax-exempt for income tax purposes 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.
• For participations owned before 1 January 2019, the anti-avoidance rules did not apply if a dividend income or capital gain was realised before 31 December 2021. As of 1 January 2022, regular anti-avoidance rules apply to such participations.

Organisation for Economic Co-operation and Development (OECD) Global Minimum Tax

The Liechtenstein government published a draft GloBE-Tax-Law for consultation on 29 March 2023. Any consultation input is to be provided until 2 June 2023. The draft GlobE-Tax-Law shall be finalised for parliamentary debate in September 2023. The draft law is in line with the OECD Model Rules and Commentary. When passed into Law, it shall apply in parallel to the existing Liechtenstein Tax Act.

The draft GloBE-Tax-Law foresees to introduce:

• A qualified domestic minimum top-up tax (QDMTT) effective 1 January 2024.
• An Income Inclusion Rule (IIR) effective 1 January 2024.
• An Undertaxed Payments Rule (UTPR) effective 1 January 2025.