PROTOCOL

At the signing today of the Convention between the Principality of Liechtenstein and the Principality of Andorra for the avoidance of double taxation with respect to taxes on income and on capital, the undersigned have agreed upon the following provisions, which shall form an integral part of this Convention.

(1) With reference to sub-paragraph (c) of paragraph 1 of Article 3 (Person):

It is understood that for the purposes of the Convention a dormant inheritance under Liechtenstein law is the wealth of a deceased person during the period between the time of death and the transfer of ownership to the successor(s) as taxable under Article 7 paragraph 3 of the Liechtenstein Tax Act.

(2) With reference to paragraph 1 of Article 4 (Residence):

• (a) It is understood that:
  • (i) a Liechtenstein foundation ("Stiftung"), establishment ("Anstalt") or trust enterprise ("Treuunternehmen mit Persönlichkeit") liable to tax under the domestic laws of Liechtenstein is considered as company resident in Liechtenstein;
  • (ii) persons (including private asset structures under Liechtenstein law) that are subject in Liechtenstein exclusively to the minimum corporate income tax ("Mindestertragssteuer") are not considered to be residents of Liechtenstein;
  • (iii) an entity or organisation that is established and is operated exclusively for charitable, religious, humanitarian, scientific, cultural, or similar purposes (or for more than one of those purposes) and that is resident of that State according to its laws is considered as resident of that State, notwithstanding that all or part of its income or gains may be exempt from tax under the domestic law of that State.
• (b) An investment fund and a pension fund or scheme of a Contracting State are considered to be residents of that State;
  • (i) the term "investment fund" means:
    • (A) in the case of Liechtenstein, any investment funds according to the Law on UCITS, the Law on Investment Funds, and the Law on AIFM and any other law or regulation that may develop or modify these laws in the future;
    • (B) in the case of the Principality of Andorra, an investment fund according to the Andorran Law of 12 June 2012, Law 10/2008 and any other law or regulation that may develop or modify this law in the future;
    • (C) any other investment fund, arrangement or entity of a Contracting State which the competent authority of the Contracting State agrees to regard as a collective investment vehicle for the purpose of this paragraph.
  • (ii) the term "pension fund or scheme" means:
    • (A) in the case of Liechtenstein, any pension fund or scheme covered by the Law on Old Age and Survivors' Insurance, the Law on Disability Insurance, the Law on Occupational Pension Funds, the Pension Fund Act and any other law or regulation that may develop or modify these laws in the future;
    • (B) in the case of the Principality of Andorra, a pension fund or scheme within the meaning of the Law Regulating the activity of Insurance companies of 11 May 1989 and any other law or regulation that may develop or modify this law in the future;
    • (C) any other pension fund or scheme of a Contracting State which the competent authority of the Contracting State agrees to regard as a pension fund or scheme for the purpose of this paragraph.

(3) With reference to Article 24 (Mutual Agreement Procedure):

In the event that pursuant an Agreement or Convention for the avoidance of double taxation concluded with another country after the date of signature of this Convention, Andorra agrees to include an arbitration provision in such an Agreement or Convention, the competent authorities of Liechtenstein and Andorra will start negotiations, as soon as possible, with a view to concluding an amending protocol inserting an arbitration provision into this Convention.

(4) With reference to Article 25 (Exchange of Information):

• (a) As regards the exchange of information upon request, as provided for in Article 25 of the Convention, the provisions of the Agreement between the Principality of Liechtenstein and the Principality of Andorra for the exchange of information on tax matters, signed on 18 September 2009, shall apply until the Convention enters into force. From that date on, the provisions of that Agreement shall be superseded by the provisions of the Convention.
• (b) Requests for information made under the Convention and those pending on the date of entry into force of the Convention, shall be processed as provided in the Convention, in accordance with the guidelines contained in the following provisions:
  • (i) It is understood that the standard of "foreseeable relevance" is intended to provide for exchange of information in tax matters to the widest possible extent and, at the same time, to clarify that the Contracting States are not at liberty to engage in "fishing expeditions" or to request information that is unlikely to be relevant to the tax affairs of a given taxpayer.
  • Requests for information should be as detailed as possible, including the following information:
    • (A) the identity of the person under examination or investigation, however, it is not necessary to provide the name of the taxpayer in order to define his identity, if this identity can be deduced from equivalent elements;
    • (B) the period to which the request of information refers;
    • (C) a statement of the information sought including its nature and the form in which the requesting State wishes to receive the information;
    • (D) the tax purpose for which the information is sought;
    • (E) the reasons why the information requested is foreseeably relevant for carrying out the provisions of the Convention or to the administration or enforcement of the tax laws of the requesting State in regard to the person identified in sub-paragraph (i) of this paragraph;
    • (F) grounds for believing that the information requested is held in the requested State or is in the possession or control of a person within the jurisdiction of the requested State or can be obtained by such person;
    • (G) to the extent possible, the name and address of any person believed to be in possession or having under control the information requested;
    • (H) a statement that the request is in conformity with the laws and administrative practices of the requesting State, and that the requesting State is authorised to obtain the information under the laws of the requesting State or in the normal course of administrative practice in similar circumstances, in response to a valid request of a Contracting State under the Convention;
    • (I) a statement that the requesting State has pursued all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties.
  • The above requirements contain procedural requirements that must be interpreted with a view not to frustrate effective exchange of information.
  • (ii) The rights and safeguards secured to persons in a Contracting State remain applicable in that Contracting State in the course of the process of information exchange.
  • (iii) Information provided to a requesting State in accordance with the Convention shall not be disclosed to any authority of a third State or jurisdiction.
  • (iv) Personal data may be processed and transmitted to the extent necessary for the exchange of information according to Article 25.
  • (v) Notwithstanding the entry into force of the Convention, requests for information may be made in relation to taxable periods for which requests for information may have been made under the Agreement for the exchange of information on tax matters between the Principality of Liechtenstein and the Principality of Andorra, signed on 18 September 2009.
• (c) Andorra will be ready to exchange information automatically as soon as it has effectively adopted the common standard of the OECD concerning the automatic exchange of financial information under a bilateral or multilateral agreement for the full implementation of Article 25 of the Convention.

IN WITNESS WHEREOF, the undersigned, duly authorised thereto, have signed this Protocol.

DONE in duplicate at New York, this thirtieth day of September 2015, in the German, Catalan and English languages, each text being equally authentic. In case of divergence of interpretation the English text shall prevail.

FOR THE GOVERNMENT OF THE PRINCIPALITY OF LIECHTENSTEIN:

FOR THE GOVERNMENT OF THE PRINCIPALITY OF ANDORRA: