Liechtenstein – Switzerland: New Tax Treaty Signed

On 10 July 2015, Liechtenstein and Switzerland signed a new Income and Capital Tax Treaty. Once in force and effective, the new treaty will replace the old one of 1995.

The new treaty will come into force after the two countries exchange ratification instruments. The provisions of the new treaty will have effect from 1 January of the calendar year next following that in which the agreement enters into force.

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

Dividends:
0% if the beneficial owner is a company (other than a partnership) and holds at least 10% of the capital of the company paying the dividends for at least 1 year;
0% if the beneficial owner is a pension funds;
0% if the beneficial owner is a Contracting State, a political subdivision, a local authority or its central bank;
15% in all other cases.

Interest: 0%.

Royalties: 0%.