China and Liechtenstein signed a tax treaty

03.02.2014

January 27, 2014, Martin Frick, the head of the Department of Foreign Affairs of Liechtenstein, and Liang Tsianhan, the General Consul of China in Zurich, signed a double agreement on the exchange of tax information. As Martin Frick stated, provisions of the treaty meet completely the OECD standards. The treaty provides an exchange of tax information upon request of a Contracting State.

Terms of the treaty involve the confidentiality of information, which the tax authorities share. The head of the Department of Foreign Affairs of Liechtenstein highlighted the importance of this treaty and claimed that Liechtenstein plans to enhance tax collaboration.

The treaty will enter into force on January 1st 2015 after ratification by both parties – Liechtenstein and China.

Based on: http://www.liechtenstein.li/index.php?id=372&L=1

Expert’s opinion

Chinese ideology is still Confucian despite all temporary and transient things.

One of its aspects is time. China takes time to promote yaun on the level of world reserve currency.

To do this, the Chinese society should prove a political stability to the whole world. The economy should pass through the stage of liberalization after the communist methods of economy regulation and must become as open as it is required to make the movement of money from / to China secure and stable.

Conclusion of the treaty between Liechtenstein and China is one of steps forward in this direction.  

Yaroslav Lomakin ( Managing partner of Honest & Bright” company)