Insights

In connection with developments concerning the EU Code of Conduct, Liechtenstein is planning significant amendments to the Tax Act with effect from 1 January 2019. The most relevant amendments can be summarized as follows:

Besides due diligence duties relating to anti-money laundering, financial institutions are also subject to those under the FATCA and AIA Act. The fiscal administration in Liechtenstein must monitor compliance with AIA and FATCA due diligence duties. Pursuant to Art. 11 of the FATCA Act and Art. 21 of the AIA Act, independent qualified public auditors or audit firms must carry out this monitoring. In the process, financial intermediaries may choose – in agreement with the fiscal administration – which audit firm is to conduct this statutory audit at their company.

Legal Tech is the name given to the emerging digitalization in legal work. The use of software and online services that support legal work processes are to make it possible to increasingly provide automated standardized legal services in future.

International taxation is undergoing the biggest shake-up for a generation. The already complex world of transfer pricing is at the front and centre of these disruptive changes, both in the rules that govern it and in the heightened scrutiny it now faces.

Nobody thought that complying with the Base Erosion and Profit Shifting (BEPS) transfer pricing (TP) analysis and documentation demands would be easy. Yet, the opening year has proved to make greater demands and has required more attention than many multinational enterprises (MNEs) had anticipated.

On 1 February 2018, the Swiss Federal Court decided that a Swiss company had not furnished adequate proof of the services entered in the accounts of a company with its registered office in Liechtenstein and thus had not provided substantiation in business respects. In the opinion of the Federal Court, higher standards of proof and stricter disclosure duties are applicable to service relations with companies in Liechtenstein. Although the judgement refers to a case in 2013, the tax authorities apply this judgement to current cases, even if the line of argumentation of the Federal Court is no longer valid in our view. Companies with cross-border service relations between Switzerland and Liechtenstein are thus advised to pay special attention to the documentation of services.

Grant Thornton Switzerland/Liechtenstein is presenting itself as a sponsoring partner at this year’s Finance Forum Liechtenstein. The conference networks some 600 decision-makers from the financial sector and offers top-class speakers, interesting workshops and attractive networking platforms.

Taxpayers with foreign securities can have part of the foreign withholding taxes offset in Liechtenstein and thereby reduce their tax burden. The Tax Regulation was revised as per 1 January 2018 and now contains more detailed rules in this connection. On the right, please find an overview of the most important amendments and how the offsetting of foreign withholding taxes functions.

The Tax Regulation was amended as per 1 January 2018 to concretise the documentation requirements for transactions with related parties. Companies that are obliged to document transfer prices but are unable to produce documentation in a timely manner run the risk of expenses not being considered tax-deductible or of income being offset for tax purposes.

Taxation in real-time: Gearing up for blockchain: The question is no longer whether blockchain will disrupt the tax system, but how far, how fast and how to ensure your business is up to speed. Putting the hype aside, what does blockchain really mean for tax compliance and management within your business? What are the main risks and opportunities? How can you begin preparing for the shake-up ahead?

The future of tax transparency opens your business to game-changing risks. But with these risks comes opportunity. How will your business steer through the risks of total tax transparency? And how can you take advantage of the opportunities? Tax affairs used to be a largely private matter between company and tax authority, with very little public disclosure beyond what was available in the report and accounts. Today, the veil of confidentiality is being stripped away.

President Donald Trump signed into law a sweeping overhaul of individual, business and international taxes. The enactment in 2017 means the effects must be included in 2017 financial statements. Grant Thornton breaks down the new tax reform law and provides a detailed analysis of major provisions, changes and new additions.

Antonio Donni in an interview with B2B New financial market law: Time is of the essence! The regulatory environment of the Swiss financial market is soon to undergo a radical change. The driving force is the European Union that created numerous new regulatory requirements in the wake of the last major financial market crisis. The wave of re-regulation also recently reached the Swiss financial and fund centre. Activities are now no longer possible without laws, regulations, government approvals and specific supervisory and audit regimes. The aim of this expert discussion in the B2B magazine is to point out the reforms in financial market law and the possible challenges entailed in their implementation. The following experts are taking part in the discussion:

Many working people plan to reduce their workload or take their pensions early before reaching normal pensionable age. However, it is often not taken into account that a reduction or termination of employment can also have consequences with regard to social insurance law.

Our Corporate Finance team provides advice and support to companies that want to grow their businesses. We engage in cross-border transactions throughout the transaction cycle to seize opportunities and reduce the risks involved. Find out in our latest Grant Thornton International Business Report (IBR) what the typical risks in cross-border transactions are and how we can help you navigate through the transaction cycle.

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.