The income and capital tax treaty between Liechtenstein and Monaco was signed on 28 June 2017. The treaty is the first of its kind between the two countries.
The treaty covers Liechtenstein personal income tax, corporate income tax, real estate capital gains tax, and wealth tax. It covers Monaco profit tax on commercial income levied from individual persons and profit tax levied from companies.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.
Liechtenstein generally applies the exemption method for the elimination of double taxation, while Monaco applies the credit method.
Article 27 (Entitlement to Benefits) provides that a benefit under the treaty shall not be granted in respect of an item of income or capital if it is reasonable to conclude that obtaining that benefit was one of the principal purposes of any arrangement or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit in these circumstances would be in accordance with the object and purpose of the relevant provisions of the treaty.
The treaty will enter into force 30 days after the ratification instruments are exchanged and will apply from 1 January of the year following its entry into force. However, requests for information under Article 25 (Exchange of Information) may be made in relation to taxable periods for which requests for information may have been made under the 2009 Agreement for the exchange of information in tax matters between Liechtenstein and Monaco (taxable periods beginning on or after 1 January 2010).
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