Finance

Important information on business development, financing concepts, taxes, auditing, etc.

Liechtenstein has a simple and transparent tax system. 

Legal entities are subject to the income tax (flat tax rate) of 12.5%. 
Self-employed persons are subject to income tax. 

The tax return can be completed electronically via e-Tax.

The Value Added Tax is a consumption tax and is levied on domestically generated sales and importation or delivery of certain products and services. Due to Switzerland's customs union with Liechtenstein, both countries are considered domestic respectively.

For companies in Liechtenstein, proper accounting is mandatory. Depending on the size and legal form of the company, brief or detailed information about the financial year must be provided and the annual financial statements must be published. Especially small and medium-sized companies can benefit from relief. 

1. Accounting

Whatever legal form one chooses, bookkeeping (Bookkeeping) must be kept in Liechtenstein as a matter of principle. From this it must be clearly evident in which position the company is. In addition, it must be possible to trace all business transactions - i.e. all situations in which money is used, whether as income or expenditure. In addition, there are general accounting regulations. These apply to all companies that are required by law to register in the Commercial Register and operate a business that is run in a commercial manner. This also includes company types such as institutions and foundations.

2. Annual financial statements

Companies operating in Liechtenstein are required, depending on their legal form, to provide more or less extensive information about their financial year (annual financial statements) and to disclose their annual accounts. For small and medium-sized companies, Liechtenstein legislation provides for some relief. 

3. Audit and review obligation

From a certain size, companies in Liechtenstein are required to conduct an ordinary audit (audit of financial statements). Most SMEs can undergo a review instead. Under certain conditions, there is also the possibility of a waiver of this review.