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With the introduction of the new Tax Act, Liechtenstein created a special tax status for legal entities: the private asset structure (PAS). The PAS offers tax and administrative advantages, particularly for legal entities that exclusively manage assets and do not perform any active economic activity. For instance, entities structured as a PAS are required to pay only the minimum annual corporate income tax and are not subject to further tax assessment. However, despite its benefits, the PAS status also has its pitfalls that should not be underestimated in the practice of management bodies, professional trustees, and advisors.

Last Friday, Dr. Marco Felder and Anna Stark of FS+P, together with Fabio Longo, Michael Huber and Stephen Garr of Bain Capital, had the privilege to host an investor brunch to present the Special Situations Europe II ("SSE II") fund to selected interested participants. Among the participants were decision makers from local banks as well as asset managers. Following the brunch, the participants had the opportunity for a direct conversation with Fabio Longo.

On October 6, 2023, Dr. Marco Felder and Anna Stark of Felder Sprenger + Partner AG gave an exciting presentation on the topic of «Taxation of Sportspersons» at the Career Planning Workshop organized by the Athletes Commission Liechtenstein.

Liechtenstein has agreed, as a member state of the OECD/G20 Inclusive Framework against BEPS, to introduce a global minimum tax of effectively 15 per cent according to the Global Anti-Base Erosion Model Rules (GloBE Rules). Affected are Multinational Enterprises (MNE) with consolidated revenues of more than EUR 750 million. This applies to all legal entities including foundations, trusts and partnerships. The aim of the implementation of global minimum taxation is to prevent tax competition among states and to ensure that MNEs contribute to more fairness and transparency in taxation on a global level.

Imagine a talented sportsperson who has just signed a lucrative contract with a well-known Italian football club. The contracted income is high, leading to the accumulation of considerable assets for the sportsperson. But at the same time, successful and high-earning sportspersons are at a special risk of losing some or all of their assets again. Boris Becker is just one prominent example. How can internationally successful athletes protect themselves in this regard?

In two judgments in 2015 and 2017, the Administrative Court of the Principality of Liechtenstein (VGH) considered private asset structures (Privatvermögensstrukturen, PVS) under Article 64 of the Liechtenstein Tax Act (SteG). In one of these two decisions, the German legal form of the GmbH & Co. KG (limited liability company & limited partnership) played a central role. This article first explains the main characteristics of a Liechtenstein PVS and provides insight into both of the VGH decisions. The main part of the article looks at whether and in what cases a Liechtenstein foundation is suitable to serve as the limited partner of a German GmbH & Co. KG.

It was a great success: The first FS+P Sport Symposium was held on 26 June 2019, where eight high-quality speakers and 45 selected guests accepted the invitation of Dr. Marco Felder. The guests included lawyers, tax experts, professional trustees, asset managers, representatives of sports agencies, the executive board of the Liechtenstein Olympic Committee, and representatives of sport sponsors such as LGT Bank Ltd. and Rauch Fruchtsäfte GmbH . The conclusion of the talks is clear: Liechtenstein has had an excellent economic link with sport for many years and is in many respects an outstanding location for internationally successful sportspersons and artists.

Few people are likely to be aware that Liechtenstein is by far the most successful nation worldwide in the unofficial statistics of "Olympic medals per capita". For decades, Liechtenstein has also had a strong economic connection to sport and is a good country for sportspersons to reside in – not least of all thanks to its quality of life, geographical location, and internationally compliant and attractive tax law.

The formation documents of foundations drawn up by Liechtenstein professional trustees often contain provisions on protectorates. A protectorate may be established if, at the time the foundation is formed, there is not yet a sufficient relationship of trust between the client and the professional trustee. In such cases, clients want to make sure that the assets they transfer to the foundation and separated from their personal assets will be used for the purposes they intend. As a founder, the client therefore wants to reserve the right to exert influence on the management and use of these assets. For this purpose, certain rights may be assigned to the protectorate.

On 6 December 2018, the Parliament of the Principality of Liechtenstein submitted a postulate on tax relief for families to the Government. The Government's response of 7 May 2019 (Report and Motion 52/2019) includes three proposals that might take effect as early as the 2019 tax year.

In August 2018, the Government of the Principality of Liechtenstein published the draft Law on Tokens and Trustworthy Technology Service Providers ("Blockchain Act") and circulated it for consultation.

As is the case in other countries, owners employed in their own company in Liechtenstein have the privilege of setting their salaries autonomously. As a rule, they tend to set the lowest possible salary and the highest possible dividend, since no social insurance contributions such as Old Age and Survivors' Insurance, Disability Insurance, and Family Compensation (AHV-IV-FAK) are owed on capital income such as dividends. But the Fiscal Authority does set limits in this regard.

Liechtenstein will das Geschäft mit der Blockchain zu einem neuen Standbein der Wirtschaft machen. Der Ansiedlung moderner Fintech-Unternehmen steht man daher positiv gegenüber. Im August 2018 hat die Regierung einen Entwurf des Blockchain-Gesetzes zur Vernehmlassung veröffentlicht, das dem Kundenschutz dienen und für den Benutzer Rechtssicherheit schaffen soll.

Unter dem neu in Kraft getretenen Doppelbesteuerungsabkommen zwischen der Schweiz und Liechtenstein können in Liechtenstein ansässige Gesellschaften, Stiftungen und Personen die schweizerische Verrechnungssteuer ganz oder teilweise zurückfordern. Wie funktioniert die Rückerstattung der Verrechnungssteuer und was gilt es zu beachten?

Die Foundation Governance ist ein Schlüsselelement im Wettbewerb der Stiftungsordnungen. Die Einhaltung des Stifterwillens sowie des Zwecks der Stiftung über Jahrzehnte erfordert ein ausgewogenes Verhältnis von Verwaltung und Kontrolle. Die Bandbreite der für eine optimale Governance zur Verfügung stehenden Mechanismen ist in Liechtenstein beachtlich.

Die Sicherung von Vermögen in einer wirtschaftlich unsicheren Welt setzt Stabilität voraus. Liechtenstein verfügt über ein hohes Ausmass an Stabilität.

Normative Unterschiede sind nicht zuletzt in einem Umfeld steigender Klagen und Prozesse gegen Verwaltungs- und Stiftungsräte aus rechtlicher Sicht ernst zu nehmen und erfordern in der praktischen Anwendung angemessene Sorgfalt.

Für Liechtenstein ergeben sich zweifelsohne Chancen unter dem neuen DBA mit der Schweiz, welches am 1. Januar 2017 in Kraft getreten ist. Inwieweit aber ergeben sich dadurch Chancen für die Schweiz?

Die ganze Welt spricht derzeit von US-Präsident Donald Trump. Die aktuellen geopolitischen Veränderungen wirken sich auch auf das Steuerwesen aus. Verwaltungsräte und Geschäftsleitungen Liechtensteinischer Unternehmen sind künftig einmal mehr stark gefordert.