LIECHTENSTEIN TAX COMPLIANCE APPLAUDED

The European Council has recently commended Liechtenstein on its tax policy, alluding to the Principality as a reliable partner, following its assessment of Liechtenstein’s relationship with the European Union (EU).

According to the Liechtenstein government, the European Council recognized the Principality’s efforts to align its tax legislation with European Economic Area (EEA) law. The Council also praised the government on its commitment to adhering to the Organization for Economic Cooperation and Development (OECD) standards in tax matters, following the Liechtenstein Declaration in March 2009 in which it pledges to comply. In this context, the Council welcomed Liechtenstein’s conclusion of numerous bilateral tax agreements considered to be in line with internationally accepted standards.

The European Council highlighted as positive Liechtenstein’s willingness to cooperate and to negotiate on the issue of the taxation of savings.

The Council said that despite its size, the Principality is a role model for other small states in Europe vis-à-vis its relations with the EU, thanks notably to the government’s political will and to an efficient administration.

Finally, the Council noted as a positive development Liechtenstein’s full membership since December 2011 of the Schengen area, created to facilitate the free movement of persons within the EU.

Liechtenstein’s Prime Minister Klaus Tschütscher welcomed the European Council’s recognition of the country’s constant strides to become a reliable partner in Europe.