Italy and Liechtenstein

The government of Italy included Liechtenstein in their White List of jurisdictions, which as they think are the most cooperative in tax questions.

According to the order of Finance Ministers of Italy Liechtenstein was remove in a White List of jurisdiction and approved 9 of August and published 22 of August.

The Italian government moves come after Liechtenstein signed agreements with EU in October 2015 for automatic exchange of information about financial accounts from 2017.

According to this agreement’s members of EU can get the names, addresses, number of tax identification and dates of birth of citizen who has accounts in Liechtenstein and also another finance information and account balance.

The government of Liechtenstein claimed that the including of this country to the White List has a lot of advantages for companies in Liechtenstein. It includes 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 is also recently represented their document about of ratification of the Multilateral Competent Authority Agreement on country-by-country (CbC) reporting.

With the move Liechtenstein will be able to exchange information which are exists in CbC reports with tax agree partners, who introduce needed report's standard. Liechtenstein was one of the first who signed these agreements, which on 30 of June 2016 had 44 signatories.

Author: Sergey Panov

managing partner Finance Business Service

Free Trade Agreement

Representatives of the European Free Trade Association (EFTA) - Iceland, Liechtenstein, Norway and Switzerland - and the Philippines signed a free trade agreement.

The agreement was signed April 28, 2016 in the Swiss capital city of Bern.

This agreement is based on a joint declaration on cooperation signed between EFTA and the Philippines in June 2014 in Iceland. And the negotiations on a free trade agreement began in March 2015.

The agreement is comprehensive, covering: trade in goods, including industrial and agricultural, fish and other marine products; rules of origin; trade facilitation; sanitary and phytosanitary measures; technical barriers to trade; trade in services; investments; competition; protection of intellectual property rights; government procurement and sustainable development.

According to the European Association of Free Trade, foreign trade in goods between the EFTA and the Philippines and increased by an average rate of 11 percent between 2005 and 2015.

In 2015, total merchandise trade between EFTA and the Philippines was estimated at $ 863 million, with exports to the EFTA Philippines in the amount of $ 407 million, and exports from the Philippines - $ 456 million.

EFTA currently has 27 free trade agreements with 37 partners who are not members of the EU.

Author: Olena Kutova

senior lawyer of the Finance Business Service company