Liechtenstein pens tax deals with South Africa, Bahrain

Liechtenstein announced Wednesday that it had signed new tax deals with South Africa and Bahrain, bringing the tiny Alpine country closer to conformity with international banking standards requiring greater transparency.

“This agreement puts Liechtenstein firmly on the road to international cooperation on fiscal matters,” Prime Minister Klaus Tschutscher said in a statement from Vaduz.

The accord with South Africa involves the exchange of information between each country’s tax authorities, the statement continued.

A separate agreement concluded with the Gulf kingdom concerned double taxation, Liechtenstein authorities said, in a further sign that the principality is keen to boost its image as a more transparent tax haven.

In March 2009, Liechtenstein agreed tofollow banking transparency standards laid down by the Organisation for Economic Cooperation and Development (OECD), but it still remains on the OECD’s tax haven “grey list”.