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LUXEMBOURG - LIECHTENSTEIN

New treaty will adopt OECD rules on tax reporting

1 min

Luxembourg and Liechtenstein announced plans on Friday to conclude a treaty in line with the Organisation for Economic Cooperation and Development's rules on tax reporting. Both powers are under pressure to revise their laws on banking secrecy.

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AFP - Liechtenstein and Luxembourg, which have both been criticised by world powers for their banking secrecy, are planning a tax treaty to fall into line with OECD rules, Liechtenstein said Friday

The Organisation for Economic Cooperation and Development (OECD) last month put Luxembourg and Liechtenstein on a list of territories it said had not yet fully implemented international tax reporting norms.

One of the requirements relates to the number of bilateral agreements a country has signed with other countries to exchange banking information for taxation purposes.

"With this step towards an OECD-compliant double taxation agreement, we are showing that we (can) move fast in implementing the commitments we have entered into," said Liechtenstein Prime Minister Klaus Tschuetscher during a visit to his Luxembourg counterpart Jean-Claude Juncker.

Tschuetscher said in a statement he was confident that similar dual taxation treaties would be possible with other European Union countries.

The government decided on March 12 to ease the country's legendary banking secrecy and to adopt OECD tax standards after pressure during a crackdown the Group of 20 leading economies against tax evasion in recent months.
 

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