Liechtenstein: Updated FATCA and AEOI guidance

Liechtenstein: Updated FATCA and AEOI guidance

The tax authority of Liechtenstein issued guidance providing updated information about FATCA and the automatic exchange of information (AEOI) rules.

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The updates concern the following:

  • Legal entities making use of the voluntary AEOI classification as a financial institution (that is, an opt-in) are required to reclassify themselves and notify the respective reporting Liechtenstein financial institution by 31 December 2021.
  • Liechtenstein financial institutions must treat entities that have not provided information on their AEOI status as passive non-financial entities.
  • Documents related to FATCA and AEOI due diligence must be retained for 10 years. “Deleted entities” must designate a storage location for future record retention.
  • Legal entities classified as reporting Liechtenstein financial institutions need to register with the tax authority, regardless of the identification of reportable accounts.
  • For deleted legal entities, the entity’s last authorized representative body is responsible for the subsequent fulfillment of the entity’s duties.
  • Kenya, Morocco, and New Caledonia have been added to the list of AEOI partner states for reporting periods beginning 1 January 2021. There is no reporting obligation with regard to accounts held by account holders or with controlling persons in partner states that are permanently non-reciprocal states.
  • Expiration of the SPG (Sorgfaltspflichtgesetz) transitional provisions must be considered for business relationships without increased due diligence requirements at the latest for the 2020 reporting period. This may lead to the identification and potential reporting of non-controlling founders and settlors as account holders or controlling persons.
  • A U.S. taxpayer identification number (TIN) is now mandatory when opening a new account, and is required to be available for reports for the reporting period from 2020. Further, if a reporting Liechtenstein financial institution does not obtain a U.S. TIN, the value ‘AAAAAAAAA’ must be specified in the report, and depending on the circumstances, this may lead to the IRS to assume significant non-compliance.

These revisions are effective 1 January 2021.

Read a December 2020 report [PDF 80 KB] prepared by the KPMG member firm in Liechtenstein

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