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28 January 2025 Liechtenstein introduces new GloBE notification requirement
On 13 December 2024, Liechtenstein published a new notification requirement under its Global Anti-Base Erosion (GloBE) regulations. The requirement applies to all Liechtenstein entities falling within the scope of the GloBE regulations, regardless of their qualification as an ultimate parent entity (UPE), constituent entity or excluded entity. The notification must be submitted within six months after the end of the fiscal year and needs to be filed on a specific form published by the Liechtenstein tax administration. The Liechtenstein GloBE regulation, including the notification requirement, applies for the first time to fiscal years starting on or after 1 January 2024. The Liechtenstein GloBE regulation mandates the minimum taxation of large multinational and domestic business groups. Key components of the law include the introduction of the Qualified Domestic Minimum Top-up Tax (QDMTT), the Income Inclusion Rule (IIR), and the Undertaxed Payments Rule (UTPR). These taxes generally apply to domestic business units of multinational groups or large domestic groups with an ultimate parent company that has achieved an annual revenue of at least €750m in at least two of the four preceding fiscal years. The law refers directly to the Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework's GloBE Model Rules (GloBE Rules) and designates Liechtenstein as an Implementing Jurisdiction. It is important to note that although the legal framework for all three supplementary taxes was finalized, only the QDMTT and IIR were set into force for fiscal years starting on or after 1 January 2024. The regulation delegates the decision on the UTPR's entry-into-force date to the Liechtenstein Government (for fiscal years starting on or after 1 January 2025 at the earliest). To date, the Liechtenstein Government has not published further considerations regarding the entry-into-force date; therefore, the UTPR is not yet applicable in Liechtenstein. In its GloBE notification requirement announced in December 2024, the Liechtenstein Government also clarified the filing deadlines for the additional returns for QDMTT and IIR purposes. The notification requirement applies to all constituent entities of large domestic or multinational groups, including excluded entities for GloBE purposes. To comply with the notification requirement, Liechtenstein entities must register by answering and filing a questionnaire published by the Liechtenstein tax administration. The questionnaire must be transmitted by e-mail within six months after the end of the fiscal year (beginning with the fiscal year starting on or after 1 January 2024). According to the ordinance, the notification must be filed when the group falls into the scope of the GloBE regulation for the first time. The questionnaire (titled "Global Minimum Taxation of Large MNE Groups Registration") asks for information regarding the local constituent entity, the UPE, the local entity responsible for declaration/payment of the Liechtenstein Top-up tax (if there are several local entities within the same group), names of appropriate contacts to answer queries, etc. From a compliance perspective, entities in-scope of the GloBE rules should review filing requirements for the GloBE Information Return and for a (combined) QDMTT and IIR return (UTPR return may follow). While the GloBE Information Return filing deadline is in line with the model rules (i.e., within 15 months after the end of the fiscal year or 18 months after the end of the fiscal year in which the group falls into scope of the GloBE rules for the first time), shorter filing periods apply for the QDMTT and IIR returns — 12 months after the end of fiscal year. The filing deadline for the QDMTT and IIR returns may be extended upon written and justified request. Failure to comply with the notification requirements and/or filing deadlines may result in fines of up to 10,000 Swiss francs (CHF10k) and up CHF250k if failure to file the GloBE Information Return is intentional or negligent. Additionally, involved bodies (e.g., board of directors, foundation board members) of affected Liechtenstein entities should note the potential for personal liability if they breach their duties to act with diligence. Liechtenstein's introduction of the new notification requirement marks a significant step toward aligning with the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS). Concerned entities should ensure timely compliance to avoid any potential issues.
Document ID: 2025-0345 | ||||||