Liechtenstein, Luxembourg seek tax deal

25th May 2009, Comments 0 comments

Both countries plan a tax treaty to meet OECD rules.

ZURICH - Liechtenstein and Luxembourg, which were both criticised by world powers for their banking secrecy, are planning a tax treaty to comply with OECD rules, Liechtenstein said Friday

The Organisation for Economic Cooperation and Development (OECD) in April put Luxembourg and Liechtenstein on a list of territories it said did not yet fully implement international tax reporting norms.

One of the requirements relates to the number of bilateral agreements a country has with other countries to exchange banking information for tax 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 12 March to ease the country's banking secrecy and to adopt OECD tax standards after pressure from the Group of 20 leading economies against tax evasion.

AFP / Expatica

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