Italy 'White Lists' Liechtenstein

By added on 30/08/2016

The Italian Government has placed Liechtenstein on its "white list" of jurisdictions deemed to be cooperative in tax matters, reports Tax News.

Finance Liechtenstein said a ministerial order to move the jurisdiction to Italy's white list was approved on August 9 and published on August 22.

The Italian Government's move comes after Liechtenstein signed an agreement with the EU in October 2015 on the automatic exchange of information on financial accounts from 2017.

Under this agreement, EU member states will receive the names, addresses, tax identification numbers, and dates of birth of their residents with accounts in Liechtenstein, as well as other financial and account balance information.

The Government of Liechtenstein reported that the country's inclusion on the white list has "significant advantages" for companies in Liechtenstein. These include the reduction of tax at source on dividend payments, the minimization of fund taxation, and lower administrative costs. "Particular benefactors will be Liechtenstein's insurance companies, which must no longer name tax representatives in Italy," the statement said.

Liechtenstein also recently filed its instrument of ratification of the Multilateral Competent Authority Agreement on country-by-country (CbC) reporting.

With the move, Liechtenstein will be able to share the information contained in the CbC reports with tax treaty partners that have implemented the necessary reporting standards. Liechtenstein was among the first signatories of the Agreement, which as of June 30, 2016, had 44 signatories.