|Liechtenstein Signs Savings Tax Agreement with EU|
Liechtenstein has signed a new agreement with the European Union under which it will automatically disclose information to EU member states on their residents' financial accounts.
Disclosures will include account balances and proceeds from the sale of financial assets as well as cross-border income from interest, royalties and dividends.
The arrangement starts in 2017 with the exchange of information collected during 2016. It upgrades an earlier agreement, signed in 2004, under which Liechtenstein was obliged to apply measures equivalent to those in the EU's Savings Tax Directive 2003/48/EC, namely the reporting of interest payments to the saver's home country so that they can be taxed there. The new agreement extends this to cover many more types of payment and paying institutions.
Member states' tax authorities will be notified of the names, addresses, tax identification numbers and dates of birth of their residents with accounts in Liechtenstein. The exchange protocol complies with the Organization for Economic Cooperation and Development's Common Reporting Standard.
The EU signed a similar agreement with Switzerland in May this year, although that agreement does not mandate disclosure until 2018.
The opinions expressed do not constitute investment advice and specialist advice should be sought about your specific circumstances.
Published on our website on nov.05, 2015