On September 29th in Liechtenstein respectively on October 11th in London the long-expected Second Joint Declaration Concerning the Memorandum of Understanding Relating to Taxes between Liechtenstein and HMRC has been signed.

Liechtenstein has come to an agreement with the European Union on the EU Savings Tax and will therefore retain the same withholding tax as Switzerland.

The treaty between the Principality of Liechtenstein and the Federal Republic of Germany for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and fortune (DTT), including the minutes, was signed in Berlin on 17 November 2011.

With effect on 1 January 2011, Liechtenstein has introduced the new Tax Law.

The agreement and the implementation guidelines will define them thoroughly. The definition should be identical to that one in Switzerland as Liechtenstein will not be in a position to introduce an own definition on the grounds of electronic data processing performed by banks.

With today‘s worldwide <B>mobility</B> and the great number of ways to access information quickly, the world has become considerably "smaller", and local and foreign authorities and organizations have more and more means to access the privacy of any individual or corporation.

Liechtenstein foundations are a very well-known family planning instrument as they can easily be set up and maintained. However in the international tax and civil law field, especially where the assets are not only located in Liechtenstein, some additional concern should be given by the founders and/or beneficiaries.

It is proposed to implement a total revision of Liechtenstein’s tax law. The aim is to modernise the present legal order with regard to taxation, to take account of international developments.