Liechtenstein and Iceland agree to terms of tax treaty

Liechtenstein and Iceland have agreed to sign a new tax treaty, Liechtenstein’s Ministry of Finance announced April 19.

The agreement is designed to prevent double taxation and to also counter cross-border corporate tax avoidance, the Ministry of Finance said. It incorporates international tax standards to developed in the OECD/G20 base erosion profit shifting project.

The treaty also contains an arbitration clause, and clarifies taxation of investment funds, pension funds, and non-profit organizations, the Ministry of Finance said.

The text of the agreement will be published once it is signed.