Expansion of the Liechtenstein DTA network: Agreement with the Netherlands enters into force on 31.05.2021
The double taxation agreement (DTA) with the Netherlands will enter into force on 31.05.2021. This is a further, important step in the expansion of the Liechtenstein DTA network. The agreement avoids double taxation and tax reduction in income and wealth of individuals and legal entities in cross-border situations. It is therefore an important element in promoting international economic activities. It also increases legal certainty for investments and strengthens joint cooperation between Liechtenstein and the Netherlands.
The agreement contains rules on the avoidance of double taxation and tax evasion with regard to taxes on income and wealth as well as the treatment under treaty law of income from employment, remuneration of supervisory and administrative boards, pension benefits and pension funds in cross-border situations. It is based on the international standard of the OECD and considers the results of the OECD/G20 BEPS project (Base Erosion and Profit Shifting), which is directed against profit reduction and profit shifting in a cross-border context. In order to promote cross-border investments, a zero rate was provided for group dividends, interest and royalties with regard to withholding taxes.
Within the framework of the provisions on the mutual agreement procedure between the two countries, an arbitration clause was agreed to solve difficult double taxation cases. The regulation on the exchange of information corresponds to the international standard, whereby the automatic exchange of information (AEOI) is handled through the AEOI agreement between Liechtenstein and the EU.
