Expansion of the Liechtenstein Double Taxation Agreements (DTA) network: Conclusion of a DTA between the EU member state Italy and Liechtenstein
On July 12, 2023, the double taxation agreement (DTA) between Liechtenstein and Italy was signed. The agreement regulates the elimination of double taxation in cross-border situations and is based on the international standard of the OECD. It considers the results of the OECD/G20 BEPS project (Base Erosion and Profit Shifting), which is aimed at combating the reduction and shifting of profits in a cross-border context. It is therefore an important element in promoting international economic activity. In addition, it increases legal certainty for investments and strengthens joint cooperation between Italy and Liechtenstein
Conclusion of a DTA between the EU member state Italy and Liechtenstein.
The agreement regulates the avoidance of double taxation and tax evasion with regard to income taxes. In order to promote cross-border investments, a zero rate was provided for group dividends with regard to withholding taxes. As part of the provisions on the mutual agreement procedure between the two countries, an arbitration clause and an additional protocol on arbitration proceedings were also agreed to resolve difficult double taxation cases.
The provisions on the exchange of information are in line with the international standard and include an enforcement office assistance. The automatic exchange of information will continue to be handled via the AEOI agreement between Liechtenstein and the EU.
The agreement with one of Liechtenstein's most important trading partners is an important step towards expanding the Liechtenstein DTA network. It increases legal certainty for investments and strengthens joint cooperation between Liechtenstein and Italy.
Click here for the government press release.
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