Ministry of Presidential Affairs and Finance | |
Consultation period: | May 2nd, 2025 |
As of 1 January 2024, Liechtenstein introduced the global minimum taxation of large corporate groups in accordance with the OECD/G20 standard; this also includes an automatic exchange of GloBE information between the states and territories in which the group operates. The legal basis for this exchange of information is provided by the Multilateral Convention on Administrative Assistance (MAK) and the multilateral agreement between the competent authorities on the exchange of GloBE information (GIR, MCAA).
The MAK was approved by the state parliament on 9 June 2016, ratified on 22 August 2016 and has been applicable since 1 January 2017. The GIR MCAA was founded on
15 January 2025 published by the OECD/G20 and is expected to be signed in the course of 2025 by those states and territories that have implemented the minimum taxation. A first exchange of GloBE information under the GIR MCAA is scheduled to take place in 2026. In order to implement the GIR MCAA, the present bill is intended to adapt the existing GloBE Act.
The MCAA GIR stipulates that information from the GloBE declaration of groups of companies must be transmitted to those states and territories in which a business unit of the group of companies is located, provided that a bilateral exchange relationship has been activated with the state or territory concerned. The GIR MCAA contains, among other things, regulations on the period and form of the exchange of information. The amendment to the GloBE Act regulates in particular the obligations of the Liechtenstein reporting business units, the transmission of information from the GloBE return by the tax authorities, confidentiality, the use of information, confidentiality obligations and controls, the applicable procedures and the penalties for violations.
Ministry of Presidential Affairs and Finance
Tax authorities
Vaduz, 18 March 2025
LNR 2025-338
P
With the GloBE Act, Liechtenstein introduced the global minimum taxation of large corporate groups according to the OECD/G20 standard consisting of the IIR supplementary tax and the Liechtenstein supplementary tax (QDMTT) as of 1 January 2024. The responsible OECD expert committee has recognised the Liechtenstein implementing provisions contained in the GloBE Act and the GloBE Regulation as qualified, which was set out in the OECD/G20 Administrative Guidelines on the GloBE Model Regulations, published on 13 January 2025.
Chapter 8.1 of the GloBE Model Rules contains an obligation to exchange information from the GloBE declaration ("GloBE Information Return"; GIR). In the meantime, the Inclusive Framework on BEPS has developed a globally uniform GloBE declaration with a corresponding XML schema. Accordingly, a group of companies must provide the competent authorities of the jurisdictions in which it operates with standardised information on the structure of the group of companies and certain tax indicators in order to enable smooth and efficient implementation of the GloBE regulations.
JUSTIFICATION OF THE SUBMISSION
This bill is intended to create a legal basis for the exchange of GloBE information. The GloBE Declaration of the Group
must be submitted to the tax administration for each financial year and is then exchanged with the partner states concerned via an exchange of information between the authorities. This exchange of information is based on the Convention on Mutual Administrative Assistance in Tax Matters (MAK) and a corresponding multilateral agreement of the competent authorities on the exchange of GloBE information (GIR MCAA). The MCAA GIR is expected to be signed in the course of 2025 by those states and jurisdictions that have implemented the minimum taxation. Liechtenstein also intends to join the GIR MCAA as a contracting state. The national implementation of the GIR MCAA must then be notified to the OECD, specifying the partner states to which Liechtenstein transmits GloBE information and from which Liechtenstein receives GloBE information.
The MCAA GIR establishes an annual automatic exchange of information that is to take place bilaterally between the competent authorities of the tax jurisdictions. The relevant data should be exchanged in the respective country no later than three months after the submission deadline (six months for the first reporting year). The first exchange of GloBE information regarding the 2024 financial year will take place in the course of 2026.
With the present implementation of the exchange of the GloBE information via the GIR MCAA, it will be possible for the reporting business units located in Liechtenstein (usually the ultimate parent company of the group of companies) to submit the necessary information centrally to the tax administration. This means that they do not have to submit the information separately in all the countries in which the group operates and which have implemented the minimum taxation. In addition, Liechtenstein receives the relevant information for business units of multinational groups of companies located in Liechtenstein.
This bill is intended to form the national legal basis for the exchange of information from GloBE declarations on the basis of the Multilateral Administrative Assistance Convention (MAK) and the multilateral agreement between the competent authorities on the exchange of GloBE information (GIR MCAA); it contains the following focal points:
Obligations of the reporting business units, in particular the obligation to register, the obligation to provide information and the establishment of proper condition,
Control of reporting business units,
arrangements for the exchange of the GloBE Declaration with partner states,
Confidentiality and use of the GloBE information,
confidentiality obligations,
Procedural provisions relating to GloBE information,
Criminal provisions, in particular adaptation of the GloBE Act to the draft of the Administrative Criminal Act, which was discussed by the state parliament in its first reading on 6 December 2024 (BuA 2024/148).
EXPLANATIONS OF THE INDIVIDUAL ARTICLES
In addition to the minimum taxation, the GloBE Act is also intended to regulate the transmission and exchange of information from the GloBE declaration, which is also an integral part of the GloBE model regulations (Pillar Two).
The information submitted as part of the GloBE return is intended to enable the tax administrations in the place where the business entities are located to assess the accuracy of the supplementary tax liability of a business entity or, where applicable, of the recognised national supplementary tax using domestic procedures, including for the filing of domestic tax returns.
The international agreements on the exchange of GloBE information are the Multilateral Administrative Assistance Convention (MAK) and the Multilateral Agreement of the Competent Authorities on the Exchange of GloBE Information (GIR MCAA); Art. 6 of the MAK, together with the GIR MCAA, constitutes the legal basis under the international treaty for the automatic exchange of information from the GloBE declaration. Together, they therefore constitute an applicable agreement within the meaning of paragraph 2.
Pursuant to paragraph 3, deviating provisions of the applicable agreement are reserved. The application of this law must take into account the underlying bilateral or multilateral agreements (including the corresponding agreements of the competent authorities). Exclusive observance of this law is not sufficient. In the present case, the MAK and the GIR MCAA in particular must be taken into account.
For the purposes of this Act, the "GloBE declaration" (subsection (i)) refers to the declaration to which Article 8.1 of the GloBE Model Regulations refers ("Globe Information Return"). "GloBE Information" (letter k) means the information contained in the GloBE Statement.
The GloBE declaration consists of two sections and must be submitted according to the distribution approach regulated in the GIR MCAA.
A general section must be sent to the implementing countries in which the ultimate parent company or business units of the group are located. States that have only adopted a QDMTT and neither an IIR nor a UTPR will not receive the summary in Section 1.4 of the GloBE Declaration.
A jurisdictional section is to be submitted to those states that have taxation rights under the GloBE regulations or under a QDMTT.
A "partner state" (letter l) is a state or territory with which Liechtenstein has agreed to automatically exchange GloBE information.
A "reporting business entity" (letter m) is a business entity located in a state or territory that is required to file a GloBE declaration under the domestic law of that state or territory. In principle, according to Art. 8.1.1 of the GloBE Model Rules, any business entity located in a participating state is a reporting business entity, unless the GloBE declaration is filed by the ultimate parent company or an mandated business entity in accordance with Art. 8.1.2 of the GloBE Model Rules. It can be assumed that the GloBE declaration is usually submitted by the ultimate parent company. If the ultimate parent company is located in Liechtenstein, it is considered a reporting business unit. In this case, any other Liechtenstein business units of the group do not have to submit a GloBE declaration.
The global minimum taxation generally applies to groups of companies with a turnover limit of at least EUR 750 million. As far as can be seen, no country has so far provided a qualified implementation of the minimum taxation below this
threshold value, so that there is currently no scope of application for para. 3. In addition, discussions at OECD level following the entry into force of the GloBE Act revealed that the Liechtenstein supplementary tax as a conditional tax liability would not be offset against a foreign supplementary tax anyway on the basis of the OECD/G20 Administrative Guidelines. As a result, the Liechtenstein supplementary tax below the threshold value would therefore represent an additional tax burden and lead to double taxation; it is therefore to be deleted without replacement.
The tax administration shall issue all rulings and decisions necessary for the application of the applicable Convention and this Act.
Unless otherwise provided for in the Act, in particular by referring to provisions of the Tax Act, the State Administrative Care Act (LVG) shall apply.
In para. 1 letter c, the terminology is adapted to the GIR MCAA.
A new section will be created to regulate the exchange of GloBE information. This section regulates the obligations of Liechtenstein reporting business units (Art. 14a to 14d), the transmission of GloBE information (Art. 14e) and confidentiality, use of information and data security (Art. 14f to 14h).
For this purpose, business entities located in Liechtenstein that submit a GloBE return must register with the tax administration without being asked to do so (para. 1). Registration must take place no later than 15 months after the end of the financial year to which the GloBE declaration relates (para. 2). The fiscal year corresponds to the term "reporting fiscal year" from the GIR MCAA. Changes to the registered data must be notified to the tax administration without delay (para. 3). If the status as a reporting business entity ends, the tax administration must be deregistered without being asked to do so (para. 4).
Reporting business entities located in Liechtenstein are obliged to provide the tax administration with information about all facts necessary for the implementation of the applicable agreement and this Act. This also applies with regard to deleted business units (para. 1).
Statutory provisions on data, professional or business secrets shall not preclude the disclosure of the information pursuant to subsection (1). Business units located in Liechtenstein are released from their confidentiality obligations to the corresponding extent (para. 2). The confidentiality obligations and the exceptions thereto are regulated in Art. 14h.
Pursuant to para. 3 – analogous to Art. 14 para. 3 of the CbC Act and Art. 20 para. 4 of the AEOI Act – any costs incurred by the legal entity for the provision of information are not reimbursed. This provision clarifies that, analogous to the obligation to bear the costs of inspections, costs in connection with requests for information cannot be passed on to the general public.
The tax administration may carry out inspections to verify the fulfilment of the obligations of the reporting business entities located in Liechtenstein (para. 1).
Paragraph 2 stipulates that Liechtenstein reporting business entities must grant the tax administration unrestricted access to all information required to carry out the checks. To this extent, the business units are also released from their data, professional and business secrecy.
If there is reason to believe that administrative or other minor errors may have led to an incorrect or incomplete transmission of information or other violations of the applicable agreement or this Act, the tax administration shall informally request the reporting business entity concerned located in Liechtenstein to restore the correct situation within a reasonable period of time, in particular, by submitting a correct GloBE return to the tax administration.
Similarly, paragraph 1(b) provides that the tax administration shall informally request the reporting entity concerned located in Liechtenstein to restore compliance within a reasonable period of time if it finds that it is significantly in breach of its obligations under the applicable Convention and this Act.
The business entity concerned has the opportunity to submit a statement to the tax administration within a reasonable period of time before issuing an order.
The deadline for restoring the proper condition is to be extended appropriately pursuant to subsection (2) upon application. However, this is only possible in justified cases. If the error is not corrected in time, the tax administration must issue an order.
The imposition of a fine under Article 15 is reserved under paragraph 3.
The tax administration transmits the GloBE information in due time to the competent authorities of the partner states in which business units of the multinational group are located (para. 1). The MCAA GIR determines which part of the GloBE declaration is to be submitted to the respective partner state (see the explanations to Art. 3).
The transmission must take place within the time limits set out in the applicable agreement: According to Section 3 (1) GIR MCAA, the general transmission deadline is three months after the expiry of the submission deadline for the financial year applicable in the transmitting state. Under Article 6(2) of the GloBE Regulation, the GloBE return must be submitted to the tax authorities within 15 months of the end of the financial year. Thus, the deadline for submission is 18 months after the end of the financial year in question. If the financial year corresponds to the calendar year, the submission deadline to the tax administration runs until
31 March of the second following year; the tax administration must transmit the information to the partner states by 30 June of the second following year.
If a group of companies has to apply the GloBE model regulations for the first time, Section 3 (2) GIR MCAA provides for a longer transmission period of six months after the expiry of the submission deadline applicable in the transmitting state. Pursuant to Article 6(2) of the GloBE Regulation, the first GloBE declaration is to be made within
18 months after the end of the financial year. Does this correspond to
The financial year of the Group is the calendar year 2024, the submission deadline to the tax administration is 30 June 2026; the tax administration must transmit the information to the partner states by the end of 2026.
Paragraph 2 contains an authorisation in favour of the government to determine the list of partner states with which Liechtenstein carries out an exchange. The broadest possible exchange network means that the groups of companies have to submit the GloBE declaration in several countries in as few cases as possible. At this point in time, it is still unclear which countries will implement the GIR MCAA, as it was only published by the Inclusive Framework on BEPS on 15 January 2025. The contracting states of the GIR MCAA that wish to receive GloBE information must, among other things, make a declaration within the framework of the notifications as to whether they have implemented either an IIR or UTPR supplementary tax or a QDMTT supplementary tax. It can be assumed that those countries that have already introduced the global minimum taxation will sign and ratify the GIR MCAA in the near future.
Para. 3 serves to protect public order: If there is a reasonable suspicion that the transmission is contrary to public policy of the Principality of Liechtenstein, the government will issue the necessary instructions to the tax administration and, if necessary, the tax administration will not transmit the GloBE information.
For data protection reasons, the exchanged GloBE information shall be retained by the tax administration in accordance with paragraph 4 only for as long as is necessary for the purposes of the applicable agreements and this Act. For this reason, the exchanged GloBE information must be retained until the expiry of the maximum limitation periods under Art. 21 (10 years) and then destroyed. The information is not to be offered to the Office of Culture for archiving.
The use of the information to be exchanged is subject to the confidentiality regulations and other safeguards contained in the MAK and the GIR MCAA, including the provisions restricting the use of the information exchanged.
The tax administration informs Liechtenstein business entities that submit the GloBE return of a security breach regarding information to be exchanged and exchanged held by the tax administration if this breach is likely to impair the protection of personal data (para. 1). The report can be used to work towards remedying any security vulnerabilities.
The tax administration – if it is notified of this – informs domestic business entities that submit the GloBE return of a breach of security with regard to information exchanged that has occurred with the competent authority of the partner state, if this breach is expected to affect the protection of personal data (para. 2).
Business entities located in Liechtenstein that submit the GloBE declaration are obliged under para. 3 to inform foreign business entities immediately of a security breach pursuant to para. 1 or 2. The information ensures that a foreign business entity becomes aware of a security breach.
In the event of a security breach pursuant to subsections 1 and 2, the tax administration shall inform the Data Protection Office of this security breach in accordance with subsection 4.
The confidentiality obligations correspond to those under Art. 25 AEOI Act. The persons entrusted with the enforcement of the Act, in particular the employees of the tax administration, are obliged to secrecy in accordance with paragraph 1.
Paragraph 2 regulates the exceptions to the duty of secrecy. The confidentiality obligations of the persons referred to in § 108 para. 1 no. 2 of the Code of Criminal Procedure (defence counsel, lawyers, legal agents, patent attorneys and notaries), including the prohibition of circumvention laid down in Section 108 (3) of the Code of Criminal Procedure, remain unaffected by paragraph 2.
The terminology will be adapted to the German translation of the GIR MCAA ("GloBE Declaration").
Article 24 lays down rules on the liability of taxpayers. This is intended to make it clear that taxpayers are to be held directly responsible in the event of violations. The term "taxpayer" is defined independently in Art. 3 para. 1 lit. h and refers to business entities for which the attribution and levying of a supplementary tax is carried out in accordance with the GloBE Act. In particular, this includes a legal entity or a legal entity such as a corporation, a partnership, a trust, a foundation or a permanent establishment. Thus, legal forms and structures are also considered "taxpayers" who do not have legal personality under the Liechtenstein Personal and Company Law (PGR) (e.g. trusts without legal personality).
Paragraph 1 stipulates that the VStG applies to proceedings concerning the liability of a legal person, unless otherwise provided for in the provisions of the GloBE Act. The GloBE Act deviates from the definition
of the "legal person" pursuant to Art. 18 para. 2 E-VStG: Since the GloBE Act does not limit the term "business entity" and "taxpayer" to legal entities within the meaning of the E-VStG, it is clarified that the regulations applicable under the E-VStG for the liability of legal entities under the GloBE Act apply to all business entities, regardless of whether they have legal personality or not.
The previous paragraphs 1 and 2 are moved to paragraphs 2 and 3, whereby the term "administrative penalty bot" is replaced by "penalty order" on the basis of the E-VStG and the references are realigned to the E-VStG.
The reference will be adapted to the E-VStG.
Due to the E-VStG, the term "administrative penalty bot" is replaced by "penalty order"; in addition, the reference in brackets will be adapted to the E-VStG.
All amendments to the law will enter into force on 1 January 2026, subject to the unused expiry of the referendum deadline, otherwise on the day after the announcement.
With regard to the constitutionality of the global minimum taxation, reference can be made to the government's statements in the bill for the introduction of the GloBE Act (cf. BuA No. 65/2023).
IMPACT ON SUSTAINABLE DEVELOPMENT
The UN Sustainable Development Goal 17 (partnerships to achieve the goals) is affected. According to target 17.1, resources are to be strengthened, among other things, in order to improve national capacities for the collection of taxes and other levies. International tax cooperation is one measure to be able to meet this sub-goal.
The exchange of GloBE information with other countries is part of the provisions on the global minimum taxation of large corporate groups. This will promote cross-border cooperation in the field of taxation between the individual states. The information provided can help the competent authorities to implement the minimum taxation in a uniform manner throughout the world. The international exchange also helps the authorities to detect and combat unlawful shifts in the tax substrate between states, which has a positive impact on available public funds.
from the...
I give my consent to the following resolution passed by the Landtag:
The Act of 10 November 2023 on the Minimum Taxation of Large Groups of Companies, LGBl. 2023 No. 484, is amended as follows:
Article 1(2) and (3)
It also regulates the implementation of the automatic exchange of GloBE information between the Principality of Liechtenstein and partner states in accordance with international agreements that provide for the automatic exchange of GloBE information (hereinafter referred to as "Applicable Agreements").
We reserve the right to deviate from the provisions of the agreement that may be applied in individual cases.
Article 3(1)(i) to (m)
(i) 'GloBE Information Return' means a declaration pursuant to Article 8.1 of the Model GloBE Rules on the basis of an applicable agreement;
"GloBE information": information from GloBE declarations;
'Partner State' means a State or Territory with which Liechtenstein has agreed to automatically exchange GloBE information;
'reporting entity' means a business entity situated in a State or Territory which is required to file a GloBE declaration under the domestic law of that State or Territory.
Article 4(3)
Abrogated.
Article 11(2)
2) It shall issue all orders and take all decisions necessary for the application of the applicable Convention and this Law.
Article 12(2)
2) Unless otherwise provided for in this Act, the Act on the General Administration of the Land (LVG) shall apply.
Art. 13 para. 1 lit. c
a GloBE statement.
Art. 14a
Registration
Reporting business entities located in Liechtenstein have registered with the tax administration without being asked to do so.
In accordance with the requirements of the tax administration, registration must take place within 15 months of the end of the financial year to which the GloBE return relates.
Changes to the data registered in accordance with paragraph 1 shall be notified to the tax administration without delay.
If the status as a reporting business entity ends, the business entity must deregister with the tax administration without being asked.
Art. 14b
Obligation to provide information
Reporting business entities located in Liechtenstein must provide the tax administration with information on all facts necessary for the implementation of the
of the applicable Convention and of this Act. In the case of deleted reporting business units located in Liechtenstein, the former bodies authorised to represent the company must provide this information.
Statutory provisions on data, professional or business secrets do not preclude the release of the information pursuant to subsection (1), unless it is information that is subject to the protection of secrecy pursuant to Section 108 (1) no. 2 of the Code of Criminal Procedure and the surrender of which would mean an impermissible circumvention of the protection of secrets within the meaning of § 108.3 of the Code of Criminal Procedure. Reporting business units located in Liechtenstein are released from their confidentiality obligations to the corresponding extent.
The costs of providing information will not be reimbursed.
Art. 14c
Control
In order to verify the fulfilment of the obligations of the reporting business entities located in Liechtenstein, the tax administration may carry out checks.
Reporting entities located in Liechtenstein shall provide the tax administration with unrestricted access to all information relevant to the fulfilment of its obligations under the applicable agreement and this Act and which it deems necessary to carry out the checks.
Art. 14d
Restoration of proper condition
The tax administration informally requests the reporting business entity concerned located in Liechtenstein to restore the legal situation within a reasonable period of time if:
there is reason to believe that administrative or other minor errors may have led to incorrect or incomplete transmission of information or other violations of the applicable Convention or this Act; or
the tax administration finds that a reporting business entity located in Liechtenstein is significantly in breach of its obligations under the applicable Convention and this Act.
The period under subsection (1) may be extended appropriately in justified cases. If the error is not corrected in time, the tax administration will issue a corresponding order.
The imposition of fines pursuant to Art. 15 remains reserved.
Art. 14e
Principle
The tax administration shall transmit the GloBE information submitted by the reporting business entities located in Liechtenstein within
of the deadlines set out in the applicable agreement to the competent authorities of the respective partner states.
The government is responsible for the inclusion of a state or territory in the list of partner states pursuant to section 8 (1) (a) no. ii and letter b no. iii of the Multilateral Agreement between Competent Authorities on the Exchange of GloBE Information (GIR MCAA).
The tax administration is not obliged to forward GloBE information if the transmission is contrary to public policy of the Principality of Liechtenstein.
The tax administration must keep the exchanged GloBE information until the expiry of the maximum limitation periods under Art. 21. The GloBE information exchanged must be destroyed after the expiry of the maximum limitation periods.
Art. 14f
Confidentiality and use of information in the partner state
All information to be exchanged received by the competent authority of a partner state is subject to the confidentiality rules and other safeguards provided for in the applicable agreements, including those restricting the use of the information exchanged.
Art. 14g
Breach
The tax administration informs reporting business entities located in Liechtenstein of a security breach regarding information processed by the tax administration if this security breach is likely to pose a high risk to the personal rights and freedoms of natural persons or the rights of business entities.
Paragraph 1 shall apply mutatis mutandis in the event of a breach of security with regard to information processed by the competent authority of the partner state, provided that the tax administration is notified thereof.
Reporting business units located in Liechtenstein are obliged to inform natural persons and legal entities immediately of a security breach in accordance with paragraphs 1 and 2.
The tax administration shall inform the data protection office of a security breach pursuant to paragraphs 1 and 2 if this security breach is likely to result in a risk to the personal rights and freedoms of natural persons.
Art. 14h
Confidentiality obligations
Anyone who is entrusted with the enforcement of the provisions of the applicable Convention and this Act or is called upon to enforce them shall be subject to official secrecy and shall maintain secrecy vis-à-vis other public authorities and private persons about the observations made in the exercise of this activity and shall refuse to inspect official files.
There is no obligation of confidentiality:
for the tax administration when reporting and providing information to the competent authority of the partner state in accordance with the applicable conventions and this Act;
vis-à-vis Liechtenstein organs of the administration of justice entrusted with the enforcement of the applicable Convention and this Act;
vis-à-vis Liechtenstein organs of the administration of justice, the public prosecutor's office and the provincial police in the investigation of judicially punishable acts;
vis-à-vis Liechtenstein supervisory authorities and bodies responsible for imposing supervisory and disciplinary measures;
to the Financial Intelligence Unit for the purpose of combating money laundering, organised crime and terrorist financing;
insofar as there is a legal basis for this.
The confidentiality obligations of the persons referred to in § 108 para. 1 no. 2 of the Code of Criminal Procedure, including the prohibition of circumvention laid down in § 108.3 of the Code of Criminal Procedure, remain unaffected by subsection 2.
Article 15(2)
2) Anyone who intentionally or negligently fails to comply with the obligation to submit the GloBE declaration pursuant to Art. 13 para. 1 lit. c shall be punished with a fine of up to CHF 250,000.
Art. 24
Procedure for breach of procedural obligations
Unless otherwise provided for in this Act, the Administrative Criminal Law shall apply to administrative criminal proceedings.
In proceedings for violation of procedural obligations, the tax administration can proceed by means of a penalty order if the factual and legal situation is clear. Insofar as there are no deviating provisions in this Act, Articles 53 et seq. of the Administrative Criminal Law shall apply mutatis mutandis.
In other cases, unless otherwise provided for in this Act, the procedure shall be governed by Article 40 et seq. of the Administrative Offences Act.
Article 25(1)
In proceedings for tax evasion, unless otherwise provided for in this Act, Articles 40 et seq. of the Administrative Offences Act shall apply mutatis mutandis.
Article 26(2)
An objection (Art. 55 of the Administrative Penal Act) can be lodged with the tax administration against penalty orders issued by the tax administration within 14 days of service. If a fine of up to CHF 2 000 is imposed in a penalty order, only the appeal pursuant to subsection (1) shall be admissible instead of an objection.
This Act shall enter into force on 1 January 2026, subject to the unused expiry of the traineeship period, otherwise on the day following its promulgation.