Under the terms of the deal, the information exchanged between the tax authorities is to remain confidential. Furthermore, the TIEA between the Principality and China is to apply to requests submitted following the entry into force of the agreement, and with respect to taxable years commencing after the effective entry into force date.
Although the TIEA requires the approval of the Liechtenstein parliament, no further legal measures are necessary for implementation of the accord. Liechtenstein's administrative assistance act applies.
Following ratification of the text by both treaty partner states, the agreement will take effect, from January 1, 2015, at the very earliest.
Welcoming the signing of the TIEA, Liechtenstein's Martin Frick underscored that the treaty represents an important building block in the strengthening of economic relations between Liechtenstein and China. Liechtenstein aims to further extend tax cooperation beyond the scope of the agreement, via the conclusion of a comprehensive tax treaty, intended to prevent double taxation, Frick revealed.
