Tax Privileges for Holding and Domiciliary Companies
Holding companies, and companies domiciled, but not active in Liechtenstein, are exempt from all income, fortune, or revenue taxes. The only tax imposed is an annual tax on capital, which includes paid-in capital, invested property, and accumulated profits. The tax rate is one pro mille, i. e. one franc per thousand of capital, payable annually in advance. The minimum tax is one thousand Swiss francs per year.
I. The Holding Company Privilege
The holding company tax privilege is extended under Article 83 of the Tax Law to all registered legal entities, including unregistered Foundations, whose business purpose is exclusively or predominately portfolio management including the holding or management of shares and participations in other companies.
The object of the holding company tax privilege is the avoidance of the multiple taxation of the same taxable object at least to the extent that such companies do not carry on business in Liechtenstein.
II. The Domicile Privilege
This tax privilege is extended under Article 84 of the Tax Law to all registered legal entities which are domiciled in Liechtenstein, but do not carry on business in the country. The maintenance of an office with employees within Liechtenstein does not per se constitute a business activity.