| print page | close window |
 |
|
Taxes |
| In addition to company law, tax legislation in the Principality of Liechtenstein is also established under extremely liberal lines. This is a key factor behind its success as a financial centre. Of particular importance is the privilege extended to domiciled companies and trust assets under article 84 of the Tax Act. The term “domiciled companies” refers to companies which have their registered domicile in the Principality of Liechtenstein, but which are not active domestically. However, domiciled companies may maintain office premises and may employ staff. Essentially this means domiciled companies of any legal form (i.e. stock corporation, establishment, foundation etc.) as well as trust assets are exempted from all asset, purchase or earnings taxes. They are merely obliged to pay an annual capital tax amounting to 0.1% p.a. of the paid-in capital, or at least CHF 1,000.00 p.a. In the case of the foundation, the tax rate is reduced to 0.075 % for capital over CHF 2 million and 0.05 % for capital over CHF 10 million. The practice of the Liechtenstein Tax Authorities - probably with regard to other jurisdictions - is, that merely the minimum tax of CHF 1,000.00 hast to be paid. In other respects, no further tax burdens exist. As a general rule, in particular, dividend payments to individuals domiciled abroad are not subject to any tax liabilities in the Principality of Liechtenstein. Only the stock corporation incurs an additional coupon tax amounting to 4% on dividend payments. |
|
Euromanagement & Trust Company Establishment FL-9490 Vaduz, Meierhofstrasse 2, PO Box 135, Liechtenstein Tel. +423 236 11 00, Fax +423 236 11 01 office@euromanagement.li - www.euromanagement.li © 2006 Euromanagement & Trust Company Establishment, all rights reserved. |