Negotiations between China anв Liechtenstein about new tax information exchange agreement were held

18.07.2012 In order to strengthen tax cooperation, negotiations were held between representatives of China and Liechtenstein about signing tax information exchange agreement. Following the talks, the representatives stressed their belief that it was only the first step towards the close cooperation of the two jurisdictions. It is expected that the agreement will come into force later this year. There is a purpose for the Government of Liechtenstein - to build a fairly extensive network of tax treaties with most countries in the world. Implementation of this program is successfully implemented, and the agreement with China has become one of the steps towards achieving this goal.

Expert’s opinion

The tendency for tax information exchange agreements can be noticed in many jurisdictions that care about their reputation. However, a bona fide taxpayers, are fully reflected in the tax return absolutely nothing to be afraid, they did not affect the agreement between countries. Those who do business with the gray schemes should consider, because the entry into force of this Agreement give a chance to the specialized agencies of one country to disclose tax information about a taxpayer, and for certain violations may be assigned to significant monetary penalties . Nevertheless, Liechtenstein, regardless of the exchange of information with other countries is still interesting jurisdiction for granting ownership schemes (hodlingi), investments and tax planning. Tax information exchange agreement only enhances the relationship between the two countries. Rapprochement with China is a real opportunity to attract huge amounts of money in Liechtenstein, and an excellent springboard for Chinese businesses in the heart of Europe. If we talk about the continuation of tax cooperation between the two countries, it is likely that the next step will be to conclude double taxation avoidance agreement.

On the basis: http://www.regierung.li/index.php?id=485

Mikhno Alexandra ( Paralegal of Moscow office of “Honest and Bright”)