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Liechtenstein: Domestic Corporate Taxation

Stamp Duty

Stamp Duty in Liechtenstein is levied according to Swiss legislation, which was substantially amended by the Swiss Federal Law on Stamp Duty 1993. There is a liability to stamp duty on the issue of shares and bonds. Zero rates apply to mergers and other corporate transformations. Issuance of foreign securities was relieved from stamping in 1993, but turnover tax applies (see below).

The rate of stamp duty on shares (the issue of capital in a corporation) is, at the time of writing, 1%; but the first CHF1m of any issue of capital (initial or subsequent) is exempt.

The transfer against payment of ownership in certain instruments (such as bonds, shares, participation certificates, shares in investment funds) are subject to the stamp duty as turnover tax, if one party or intermediary is a domestic securities dealer. The duty is calculated on the basis of the payment and is 0.15% for instruments issued by a domestic issuer and 0.3% for instruments issued by a foreign issuer. Tax liability rests with the domestic securities dealer.

In general, all insurance premium payments for policies belonging to the domestic portfolio of a supervised insurer are subject to the tax on insurance premiums. In addition, premium payments for policies concluded by a domestic policyholder with a foreign non-supervised insurer are subject to tax. Due to a comprehensive list of exemptions, generally only premium payments for liability and vehicle damage insurance as well as for certain property insurance are still subject to tax, but not premium payments for personal insurance. The tax is calculated on the cash premium and is in general 5%, or 2.5% for single premium redeemable life insurance.



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