Private wealth structure

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Private asset structures (PVS) are Liechtenstein entrepreneurial institutions that are privileged under tax law . The most important distinguishing feature from other companies registered in the commercial register is that private asset structures do not carry out any economic activity in Liechtenstein.

The term private asset structure is used exclusively in connection with the Liechtenstein Tax Act and the Tax Ordinance.

Legal basis and definition

According to Article 64, Paragraph 1 of the Tax Act, private asset structures are such entrepreneurial institutions:

  1. which, in pursuit of their purpose, do not carry out any economic activity, in particular if they exclusively use financial instruments according to Art. 4 Para. 1 let. g of the Asset Management Act as well as holdings in legal persons, liquid funds and bank account balances acquire, own, manage and sell ;
  2. whose shares or units have not been publicly placed and are not traded on a stock exchange and whose ownership is reserved for the investors named in Paragraph 3, or for which no investors other than those named in Paragraph 3 are favored ;
  3. who neither solicit shareholders nor investors nor receive payments or reimbursements from them or from third parties for their activities in accordance with lit. a received ; and
  4. their statutes indicate that they are subject to the restrictions on private asset structures .

The legal persons within the meaning of the SteG also include foundations , trust companies and trusts under Liechtenstein law.

Domiciliary companies

The term " domiciliary company" used in the old tax law and the popular colloquial term " domiciliary company" (also domicile company ) were deliberately avoided in the new tax law. A separation between domiciliary company (Art 84) and holding company (Art 83) of the Tax Act (old version - old version) was no longer made in the new Tax Act (new version - new version).

In the Principality of Liechtenstein , the personal and company law (PGR) " distinguished between two types of companies under Liechtenstein law, namely Liechtenstein companies that do not conduct business in Liechtenstein (domiciliary companies) and those that do business in Liechtenstein (active companies). ".

In the PGR, even after 2010, various simplifications have been standardized for companies that " do not operate a commercial type of business ". However, the term private asset structure is not found in the PGR. In practice, the private asset structure according to SteG can be equated with the entrepreneurial institutions according to PGR that " do not operate a commercial type of business ".

The " Agreement between the Principality of Liechtenstein and the Republic of Austria on cooperation in the field of taxes " of January 29, 2013 includes both the term private asset structure and the term domiciliary company.

Scope of the permitted activity

The scope of the permitted activities of private asset structures in Liechtenstein is based on that of the previous domiciliary companies or holding companies. The domiciliary companies or holding companies were previously allowed to:

  • to operate an office with administrative tasks for its own purposes (correspondence, internet, telephone and fax service, invoicing, bookkeeping, etc.) and
  • Employ workers for these purposes,
  • To entrust third parties with these and related tasks ( trustees , auditors , banks , lawyers, etc.)
  • Do not operate any further economic activity or a commercial type of business in Liechtenstein.

The private wealth structure can be used both as a simple "domiciliary company" and as a holding company, without losing the tax privilege, as long as no economic activity or similar (see above) is carried out in Liechtenstein.

Tax burden

All taxable legal entities are subject to income tax. The tax rate for legal persons has been standardized at 12.5%; since private asset structures are not assessed, only the minimum income tax is due. The minimum income tax for private asset structures is 1,800 francs (Art 62 (2) SteG).

According to the " Protocol to amend the agreement signed in Vaduz on November 5, 1969 between the Principality of Liechtenstein and the Republic of Austria to avoid double taxation in the area of ​​taxes on income and assets " of January 29, 2013 and the attached additional protocol pursuant to Art II, private asset structures Liechtenstein law of "apply which only the minimum income tax in Liechtenstein are subject, for tax purposes within the meaning of the Agreement between the Principality of Liechtenstein and the Republic of Austria for the avoidance of double taxation with respect to taxes on income and on capital " from November 5, 1969 not than resident in the Principality of Liechtenstein.

The protocol to the "Agreement between the Swiss Confederation and the Principality of Liechtenstein for the Avoidance of Double Taxation in the Field of Taxes on Income and Assets", concluded on July 10, 2015, provides in accordance with Section 2 of Article 4 lit. b proposes an analogous regulation: private asset structures are considered "tax-transparent".

Swiss law

According to Swiss law, domiciliary companies, as opposed to operating companies, legal persons, companies, institutions, foundations, trusts, fiduciary companies and similar associations that do not operate any commercial, manufacturing or other commercial business. As a rule, the purpose of a domiciliary company is to manage the assets of the beneficial owner, which is particularly the case with companies that do not have any operational activities. However, companies that combine the holdings under a single management ( holding companies ) or family foundations are not considered domiciliary companies .

Sources and References

  1. ^ Act of 23 September 2010 on state and municipal taxes (Tax Act, SteG), LGBl 340/2010.
  2. ↑ Ordinance of December 21, 2010 on state and municipal taxes (Tax Ordinance; SteV), LGBl 437/2010.
  3. ↑ Queryed on March 10, 2013 at www.gesetze.li.
  4. ↑ Law of January 30, 1961 on state and municipal taxes (Tax Law), LGBl 7/1961, Art 84.
  5. ↑ The term "domiciliary company" was used in connection with the exemptions from tax liability in Art 25 Para. 3 Value Added Tax Act (old version), LGBl 163/2000, in connection with Art 83 and 84 Tax Act (old version) and also in other tax laws and amendments to Tax Act (old version) still used. Also in other laws, e.g. B. in the PGR in the version before 2010 or the ordinance of February 21, 2006 amending the Public Register Ordinance, LGBl 53/2006, the term was used.
  6. ↑ Definition according to the judgment of the EFTA Court of February 22, 2002 on the right of establishment - residence requirement for at least one member of the administrative board of a domiciliary company in Liechtenstein in case E-2/01, margin no.14.See also: Information sheet on company formation (sic!) In Liechtenstein from the Office for Economics, Guide 12/2006, accessed on March 10, 2013 under [1]  ( page no longer available , search in web archives )  Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice. (PDF; 35 kB).@1@ 2Template: Dead Link / www.llv.li  
  7. ↑ For example in Art 291 Paragraph 11, Art 394 Paragraph 4, Art 538 Paragraph 1a, Art 552 § 19, Art 690 Paragraph 2a, Art 932a § 15, Art 957 PGR.
  8. ↑ LGBl 432/2013.
  9. ↑ Art 34 Para. 3 Agreement of January 29, 2013.
  10. ↑ Art 2 para. 1 lit. h) and i) Agreement of January 29, 2013.
  11. ↑ The minimum income tax for domiciliary companies was 1,000 francs before the change due to the new tax law.
  12. ↑ FL-LGBl 433/2013; ÖBGBl III No. 302/2013.
  13. ↑ SR 0.672.951.43 Agreement of July 10, 2015 between the Swiss Confederation and the Principality of Liechtenstein on the avoidance of double taxation in the area of ​​taxes on income and assets. Retrieved May 9, 2020 .
  14. ^ Markus Mühlemann; Domiciliary companies . Retrieved December 14, 2015.