Insights

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.

Grant Thornton Switzerland/Liechtenstein was the main sponsoring partner at this year's "Future Masters" golf tournament for the second year in a row. The "Future Masters" tournament was held on Saturday, 27 July 2019 at the Golf Club Bad Ragaz. The 18-hole Championship Course has been a member of the "World of Leading Golf" since 2018 and stretched passionate golfers to the limit. Surrounded by an impressive mountain panorama, the impeccably kept park in Bad Ragaz offered an unforgettable golfing experience. The Golf Clinic - the beginners' course on the driving range - was available to all the "not-yet golfers" on the day of the tournament. After the tournament, an entertaining supporting programme awaited the participants in the gladys restaurant along with a culinary evening menu.

Swiss labor law is in many cases more flexible and liberal than the labor law regulations in other European countries. Liechtenstein has adopted the Swiss regulations on employment contract law (Art. 319 et seq. Swiss Code of Obligations (CO)) practically one-to-one (§ 1173a Art. 1 et seq. Liechtenstein Civil Code (ABGB)). The liberal character of Swiss and Liechtenstein labor law is reflected in particular in the regulations governing the termination of an employment relationship. In practice, however, there are often uncertainties in connection with dismissals. The following summary provides a brief overview of some of the frequently asked questions.

The G20 has endorsed the The Organisation for Economic Co-operation and Development’s (OECD’S) roadmap for resolving the ‘tax challenges arising from the digitalisation of the economy’. The reallocation of profits and minimum tax proposals that have emerged following a recent round of consultations could put an end to the arm’s length principle that has governed transfer pricing for decades.

Governments and tax authorities are scrambling to keep pace with the increasing digitisation of the global economy and public outcry over the levels of corporate tax being paid by large multinational enterprises (MNEs).

The legal provisions on money laundering were extended in Liechtenstein on 1 July 2019 and now also include tax fraud and qualified tax evasion, even if this leads merely to a tax saving and not to an actual inflow of capital. Those affected will now face the challenge of proving that no possible tax saving has been made. For legal entities with foreign participants that have little substance in Liechtenstein, providing adequate evidence may pose a particular challenge.

Technology is continuing to advance at a rapid rate, bringing new growth opportunities for organisations around the world. While it enables new commercial models and supports emerging business areas, it brings additional pressure for established organisations to keep up to date. These advances create new challenges for risk management, and organisations must be more alert than ever around emerging risks. In this document we set out the top ten technology risks, which audit committees should seek to gain assurance over.

Global business is facing a wave of disruptive influences that look set to spark the Fourth Industrial Revolution. We explore how the way professionals work is evolving, the leadership skills that will be needed within the dynamic mid-market to thrive, and how organisations can stay competitive in the war for talent and customers in 2030.

Your company can no longer afford to not have a clear IT strategy or have manual processes, unclear roles and responsibilities, poorly defined support processes or a lack of an overview or cost structure of third-party providers. In an increasingly digital and fast-moving world, it is important to be efficiently positioned in the area of IT so that both employees and customers see well-functioning and cost-efficient IT as being added value.

A public vote on May 19, 2019 approved a long awaited corporate tax reform. The main objective of the changes is to align Swiss tax law with international standards while preserving and enhancing Switzerland’s attractiveness for international mobile companies. The reform will phase out some preferential corporate tax regimes (the mixed domiciliary and principal company regulations) that were in the focus of dispute with the EU and the OECD. A bundle of new measures will strengthen Switzerland’s attractiveness as a hub for international business.

European businesses are battening down the hatches in the face of swirling uncertainty, but leaders shouldn’t just sit back and wait for a clearer picture. There are still growth opportunities in the market for those adopting the right strategies. There is no shortage of uncertainty in Europe, both economic and political. Brexit, weak export demand from China, growing populist politics ahead of EU parliamentary elections and an economic cycle that has passed its peak are conspiring to erode confidence.

As of 1 January 2018 a non-established business making electronic and telecommunication services to a recipient in Switzerland must register for VAT in Switzerland, if the Swiss recipient itself is not registered for VAT, unless the non-established business can prove that its worldwide revenue from all its supplies and services is less than CHF 100,000 per year. Up to 31 December 2017 such a non-established business has only to register for VAT, if its electronic and telecommunication services to Swiss recipients not registered for VAT amounts to CHF 100,000 or more per year.