TAX

Crediting of withholding taxes with fund shares

Christian Reichert
By:
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Provided certain conditions are met, private individuals with tax residence in Liechtenstein can claim credit for foreign withholding taxes on investment income (such as interest or dividends) in Liechtenstein.
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This was previously impossible with fund investments due to the tax administration’s implementation of the law. However, a recent decision of the Liechtenstein Administrative Court (VGH) modified the way in which the law is implemented. For private investors, this circumstance raises the question of how they can ensure that taxes that are withheld in the context of funds can be credited. On the other hand, the funds themselves may now be subject to greater reporting requirements.