Liechtenstein – Czech Republic: Tax Treaty Enters Into Force

The Income Tax Treaty between Liechtenstein and the Czech Republic entered into force on 22 December 2015. Its provisions will apply from 1 January 2016.

The Treaty was signed on 25 September 2014.

In accordance with the treaty, the following withholding taxes will apply:

Dividends:

• 0% if the beneficial owner is a company (other than a partnership) which holds for an uninterrupted period of at least one year directly at least 10% of the capital of the company paying the dividends.
• 15% in all other cases.

Interest: 0%.

Royalties:

• 10% on royalties on any patent, trade mark, design or model, plan, secret formula or process, tailor made computer software, or industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.
• 0% in all other cases.