"Taxation of investment undertakings in Liechtenstein"

Investment companies in Liechtenstein are subject to an income tax of 12.5% on taxable net income in accordance with the Tax Act. However, income from assets under management is tax-free. In addition, the equity interest deduction is applied to reduce the tax burden. The coupon tax of 4% was abolished in 2011, but still applies to old reserves from 2010. Stamp duty is levied on capital procurement and turnover with certain certificates. Liechtenstein investment companies are exempt from stamp duty, but investment companies with fixed capital are not. Stamp duty applies to the transfer of shares, unless both parties are securities dealers. VAT is not levied on the management and distribution of investment undertakings if they are subject to Liechtenstein or Swiss regulation. Investors in Liechtenstein pay wealth tax and acquisition tax, whereby income from fund units is included in the acquisition tax. Corporate investors pay income tax, but dividends and capital gains are tax-free.

Topics in the publication

Taxation of investment companies in Liechtenstein:

• Income tax
• Coupon tax
• Stamp duty
• Value added tax

Taxation of investors in Liechtenstein:

• Individual investors with private and business assets
• Corporate investors

Taxation of fund management:

• Income tax
• Issue tax and formation tax
• Turnover tax
• Value added tax