Following a review of Liechtenstein by the Forum on Transparency and Exchange of Information for Tax Purposes (“Global Forum”), Liechtenstein amended both the AEoI law and the ordinance to implement the recommendations made by the Global Forum (the Liechtenstein Tax Administration has also prepared a newsletter in German on this subject). The most important changes include:
- Abolishment of the “opt-in clause”: Until now Liechtenstein entities could choose to qualify as a Financial Institution (“FI”). This so-called “opt-in” clause will be abolished. Entities that have used that option need to be reclassified by 31 December 2021 and inform their account-holding FIs of their new status.
- “Passive NFE” as the new default status: The AEoI law provides that entities that have not informed account-holding FIs of their AEoI status shall be treated as FIs (which means they will have to comply with the reporting and other obligations under AeoI themselves). This clause will be removed. As of 1 January 2022, Liechtenstein FIs will be obliged to treat entities that have not provided information on their AEoI status as Passive NFEs.
- New registration requirement for all Reporting FIs: Until now, Reporting Liechtenstein FIs only had to register on the Liechtenstein AEoI portal if they maintained reportable accounts. The new law provides that all Liechtenstein Reporting FIs need to register. However, nil reporting is still not required in Liechtenstein.