The Liechtenstein government issued a release announcing that Prime Minister Daniel Risch and Ambassador Aoife McGarry signed a double taxation agreement (DTA) between Liechtenstein and Ireland on Wednesday, 30 October 2024.
The agreement regulates the elimination of double taxation in cross-border situations. It is based on the international OECD standard and takes into account the requirements of the OECD/G20 BEPS project (Base Erosion and Profit Shifting) to prevent tax evasion and tax avoidance in a cross-border context.
The agreement also regulates the avoidance of double taxation in income and wealth taxes. To promote cross-border investments, no withholding tax is levied on dividends (except for real estate investment trusts; REITs), interest and royalties.
The DTA also regulates the treatment of pension funds, investment funds, asset structures and non-profit organizations under the agreement. As part of the provisions on the mutual agreement procedure between the two countries, an arbitration clause was agreed to resolve difficult double taxation cases. The exchange of information is based on the international standard, with the automatic exchange of information continuing to be handled via the AIA agreement between Liechtenstein and the EU. Administrative assistance in enforcement was also agreed.
The agreement is an important step towards expanding the Liechtenstein DTA network. It increases legal certainty for investments and strengthens the joint cooperation between Liechtenstein and Ireland.
