Paying taxes made easy also in Liechtenstein taxes have to be paid. However, the countrys fair and modern fiscal system reduces the burden for entrepreneurs and private individuals and makes the taxation process as simple as possible.
Hard work must be rewarded; capital should be available for investment, growth, research and development. This attitude to taxation matches Liechtensteins liberal approach. Companies based in Liechtenstein are subject to a flat income tax rate of 12.5 % which covers everything there is no capital tax and no coupon tax, just as there is no distribution surcharge and no tax on dividends, capital gains or liquidation gains.
Liechtenstein has Double Taxation Treaties (DTT) and Tax Information Exchange Agreements (TIEA) with a range of countries, including Germany, Switzerland, Austria and the US. By October 2015, 42 such international taxation agreements were in force, with more currently the subject of negotiations. The customs treaty with Switzerland also has an impact on taxation in Liechtenstein, with both countries sharing a low VAT rate of just 8 %.