Even if it is one of the smallest countries in Europe, Liechtenstein is one of the most prolific with a great number of foreign investors coming to start businesses here. Opening a company in Liechtenstein can be easy when carried out by professionals. In order to meet the standards of clients, our company registration consultants in Liechtenstein can assist foreign enterprises with the company setup procedure and can also put them in contact with accountants in Liechtenstein who will offer specialized financial services.
Tax facts in Liechtenstein
The taxation of companies in Liechtenstein is based on the fiscal domicile. For that, the company must have a registered address and management place in Liechtenstein. The tax imposed on companies registered in Liechtenstein is levied on the profits earned at the global level at a rate of 12.5%. Liechtenstein imposed no capital gains tax, no withholding tax on interest payments or branch remittance taxes which is what makes this small country so attractive for foreign investors.
Our accountants in Liechtenstein can offer full information on the taxation system.
Why are accounting services required in Liechtenstein?
All company owners know that accounting is the most important aspect of running a business. When opening a company in Liechtenstein most owners will hire a local accountant or accounting firm who offer specialized services. The professionals are able to guide the shareholders through the accounting requirements a company in Liechtenstein must meet. They can also inform them about the taxes they need to pay and the financial standards they must meet in order to comply with both local and international accounting norms.
Accounting services available in Liechtenstein
All accounting services available for companies in Liechtenstein will be tailored to the needs of the company. Among these are:
- drafting the company’s financial statements in accordance with the legal requirements;
- payroll services are also available for companies seeking to outsource this department;
- filing tax returns – it is best to ask for the services of an accounting firm specialized in such services;
- tax and VAT registration upon the opening of the company, which is mandatory in Liechtenstein;
- preparing balance sheets and other accounting documents which comply with the national accounting legislation;
- tax minimization solutions – there are various solutions available for those seeking to legally minimize their taxes.
You can also watch the video below on our accounting services in Liechtenstein:
FAQ on taxation in Liechtenstein
Among the questions foreign investors have when it comes to taxation in Liechtenstein are:
1. How are individuals taxed in Liechtenstein?
Individuals are taxed progressively in Liechtenstein. The lowest tax rate starts at 3.5% and goes up to 28%.
2. How are companies taxed in Liechtenstein?
Companies registered in Liechtenstein will be taxed on the incomes generated at a global level, while foreign companies with activities in Liechtenstein will be taxed on the income generated at a local level.
3. What are the withholding taxes applied to dividend payments in Liechtenstein?
Liechtenstein does not impose any withholding tax on local or foreign investors and shareholders in local companies on the dividends they receive.
4. What the periods for filing tax returns in Liechtenstein?
Both individuals and companies must file their tax returns by the 1st of July for the previous year.
5. What is the taxable period for companies in Liechtenstein?
The tax year in Liechtenstein starts on the 1st of January and ends on the 31st of December of the same year.
For complete information on all the accounting services you can benefit from, please contact our accountants in Liechtenstein.