Tax Data Deal for Germany and Liechtenstein

July 10, 2009 Tax HavensTaxation in EUTaxation in GermanyTaxation in Liechtenstein  No comments

Germany and Liechtenstein struck up a Tax Information Exchange Agreement (TIEA) on the 10th of July.

In an effort to amend the rift between the two countries, caused by a dispute over Liechtenstein’s bank secrecy laws, the TIEA has finally been agreed upon to promote bilateral co-operation on tax matters through an exchange of information. The signed agreement complies with current guidelines developed by the OECD Global Forum Working Group on Effective Exchange of Information, and is set to be enacted during the 2010 tax year, subject to a governmental ratification.

Liechtenstein Prime Minister Klaus Tschuetscher described the TIEA as a response to international attention to current financial practises in his country and regarded this agreement as “an important step in our relationship with Germany,”. There have not yet been any official comments from the German government.

Liechtenstein has already ratified a Tax Information Exchange Agreement with the U.S, and is currently holding talks with Luxembourg, the European Union and the United Kingdom in regards to similar agreements. Germany holds TIEAs with Bermuda, Jersey, Isle of Man and Guernsey. The two countries have agreed to initiate double-taxation treaty negotiations in the near future.

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