Liechtenstein and Singapore sign preliminary double taxation agreement

Following the successful conclusion of negotiations, delegations from Liechtenstein  and from Singapore have recently initialled a bilateral double taxation agreement  (DTA) between the two countries in the area of taxes on income.

According to the Liechtenstein government, the DTA largely follows the Organization   for Economic Cooperation and Development’s Model Convention, offering   an advantageous legal framework for mutual investments and strengthening and   promoting bilateral economic relations between Liechtenstein and Singapore.

The agreement ensures in particular that Liechtenstein wealth structures and   funds are recognized by Singapore and guarantees that Liechtenstein taxes are   imposed on payments to individuals abroad.

The Liechtenstein government emphasizes that the new DTA marks a further step   in the consistent expansion of its global DTA network. The agreement will increase   the attractiveness for mutual investments and will open up new development opportunities   in the economically important area of Asia.

Welcoming the initialing of the DTA, Liechtenstein’s Prime Minister Klaus   Tschütscher explained that the accord with Singapore, a state in the growth   market of Asia, opens up new potential and creates favorable framework conditions   for future investments in the financial and industrial sectors. The DTA with   Singapore represents a further important step in the implementation of the Liechtenstein   government’s agreement policy, Tschütscher ended.

The signing of the agreement is due to take place in the course of 2013 and   the accord is expected to be applicable from January 1, 2014. The text of the   treaty will be published following the signing.