Expansion of the Liechtenstein DTA network: Conclusion of a DTA between the EU member state Romania and Liechtenstein
On November 10, 2022, Romania and Liechtenstein signed a double taxation agreement (DTA). The agreement regulates the elimination of double taxation in cross-border situations and is based on the international standard of the OECD. It is therefore an important element in promoting international economic activities. In addition, it increases legal certainty for investments and strengthens joint cooperation between Romania and Liechtenstein.
The agreement regulates the avoidance of double taxation and tax evasion with regard to income and wealth taxes. The signed double taxation agreement also addresses the findings of the OECD/G20 BEPS project against base erosion and profit shifting in a cross-border context. In order to promote cross-border investments, a zero rate was provided for group dividends, and a withholding tax of 5% applies to interest and royalties. The DTA also regulates asset structures, investment funds, pension funds and non-profit organizations. The regulation on the exchange of information is in line with the international standard and includes an enforcement office assistance.
The DTA will enter into force after completion of domestic legislative procedures.
The agreement is an important step in the expansion of the Liechtenstein DTA network. It increases legal certainty for investments and strengthens the joint cooperation between Liechtenstein and Romania.
Click here for the government press release.