Insights

Grant Thornton Switzerland/Liechtenstein is sponsoring the 11th Annual Meeting of the Global Alliance for Banking on Values (GABV) as an official partner. The theme of this year’s event is “Every degree matters – mobilising finance for people and planet”, and participants will have the opportunity to share ideas and develop new solutions for the finance sector to tackle the issue of climate change. The 11th GABV Annual Meeting will run from 24 to 27 February 2020. Hosted at the Bellevue Palace hotel in Bern, it will bring together more than 150 CEOs, board members and senior managers from over 60 financial institutes from around the world.

On 14 February 2020, an article on integrated tax planning with commercial real estate in the economic region was published: The acquisition or expansion of a commercial property should be well thought through in order to optimise the tax structure. This is especially important in view of the often very high investment sums and financial effects on the company and its owner. Careful tax planning requires that not only the effects on the company are examined, but that a comprehensive overall view is taken. There are various tax levers that have an influence on the taxation of the company and its owner. These are in particular the financing (through equity or borrowed capital), the acquisition by the company itself or the owner as well as the amount of interest or rent. Translated with www.DeepL.com/Translator (free version)

On February 6, an interview with Erich Bucher, CEO of Grant Thornton Switzerland/Liechtenstein, was published in the "Handelszeitung". In the interview he refers to Grant Thornton's growth strategy in Switzerland and Liechtenstein and the current positioning in the competitive environment of auditing and consulting firms. Furthermore, he explains how the requirements profile for auditors is changing and will continue to change as a result of digital developments and new circumstances.

For trustees, the processes and procedures applying to AEOI and FATCA audits vary significantly from those affecting banks and insurance institutions. Although two different systems are involved, a legal entity is often classified according to the same criteria. A divergence between AEOI and FATCA classification should be subject to close scrutiny. For example, under FATCA a foundation is always to be classified as a financial institution (FFI) if one of its bodies is itself an FFI. The additional AEOI requirement, whereby a body must manage the assets at its own discretion, does not apply under FATCA.

The Swiss market is attractive for foreign e-commerce retailers, as it attracts high turnover. Products typically offered online to consumers (B2C) are textiles, shoes, cosmetics and beauty, food and household appliances, home electronics, furniture, books and much more. Online trading also plays a certain role in B2B transactions. The products traded depend on the respective industry.

On 1 January 2020, the Financial Institutions Act (FINIG) and the Financial Services Act (FIDLEG) will enter into force. They are specified by ordinances, published by the Federal Council on 6 November 2019. For the implementation of the new requirements that will apply to asset managers, there are various transition periods. We are happy to support you efficiently to implement the new regulatory requirements.

Since the implementation of the rules set out by the Groupe d’action financière (GAFI) in 2015, Swiss law provides for an obligation to notify the purchasers or holders of bearer shares and the beneficial owners of a company. These reporting obligations have recently been tightened. In addition, it has been decided that most companies will no longer be able to issue bearer shares. These new, stricter regulations are in force since 1 November 2019.

The Organisation for Economic Co-operation and Development's (OECD'S) latest proposals on taxing digital business pull back from the radical roadmap put forward in May to something much closer to the January policy note by proposing a modified residual profit split with benchmarking of routine profits. The G20 finance ministers subsequently welcomed progress and reaffirmed their commitment to seeking a consensus-based solution by the end of 2020.

Your business and your investments are global – and so are you. Individuals are taxed on their worldwide income in almost every country. For wealthy internationals it can be quite burdensome and difficult to gather all the information needed for their domestic tax assessment. Liechtenstein lump sum tax (also called expense-based tax) offers an easy and attractive solution for individuals considering to relocate to Liechtenstein.

For the first time Grant Thornton Switzerland/Liechtenstein will be a gold partner of the “Swiss Audit Championship 2019”, a serious virtual business game event, which targets interested parties with starter know-how in the field of auditing.

The internal auditor has a very specific and often relatively isolated role within the company. He is very close to the board of directors and management and yet not part of them. Digitalisation is also creating new challenges for risk management - companies need to be more vigilant than ever. While business remains the same, individual processes are becoming increasingly dependent on data and its in-depth analysis. It is thus clear that the career profile of an “internal auditor” will change to being that of a “business risk analyst”.

Every taxpayer can make a voluntary declaration to avoid penalty once in his life. The taxpayer can subsequently declare previously undeclared assets and/or income and only has to pay the supplementary taxes and interest on arrears. A voluntary disclosure such as this enables the taxpayer to avoid having to pay a fine or being entered in the criminal record.

With less than two months to go before 31 October, it seems ever likely that, should the UK leave the EU, it will be without a deal with the European Union. It is still possible that a deal may be agreed or that BREXIT day may be postponed further but both Government and business should be prepared for an imminent ‘no-deal’ departure. This Briefing Paper provides insight into the latest VAT and Customs developments for both importers and exporters in a ‘no-deal’ scenario.

The conference will take place for the fifth time on Wednesday, 23 October 2019 at the SAL in Schaan and has the theme “Finance meets future”. The event was founded 5 years ago by the three students David Meyer, Sina Reubelt and Tobias Fitz of the University of Liechtenstein and has since developed into an important knowledge sharing and networking platform for the Liechtenstein financial market. In addition to interesting presentations, visitors can also look forward to inspiring workshops, which focus on the current topics and needs of the local financial sector.

Electronic filing of VAT returns as a new standard will replace paper filings. As from the reporting period Q1/2020 paper filing would only be granted by exception based on a specific written request for a paper VAT return.

In order to combat money laundering and terrorist financing, it was decided - in implementation of the 4th EU Anti-Money Laundering Directive - that a register should be established in Liechtenstein in which legal entities must enter their beneficial owners. The Act on the Register of Beneficial Owners of Domestic Legal Entities (VwEG) entered into force on 1 August 2019. Existing legal entities must report the required data to the Amt für Justiz (Office of Justice) by the end of January 2020 at the latest. New legal entities must have the data entered in the register within 30 days of their registration.