Liechtenstein set to introduce OECD global minimum tax

The government of Liechtenstein has prepared a consultation draft for the introduction of the global minimum tax of 15%.

For the introduction of the global minimum tax of 15 % in the Principality, the government has prepared a consultation draft. It is foreseen that the corresponding law will be discussed in the Liechtenstein Parliament by the end of 2023 and will enter into force in accordance with the harmonised approach of the EU as of 1 January 2024.


Like the EU Directive, it is based on the OECD's two-pillar approach to counter base erosion and profit shifting (BEPS). While the 1st pillar is intended to establish a market state taxation of large digital groups, the 2nd pillar ensures a global minimum taxation of multinational groups with consolidated annual revenues of at least EUR 750 million. This is intended to achieve fairer taxation of the digitalized and globalized economy.

Till Ferst

Director, Tax & Legal

KPMG Switzerland

Execution of the global minimum taxation in Liechtenstein

The government envisages the following key points for the implementation of the global minimum tax in Liechtenstein based on the «Global Anti-Base Erosion (GloBE) Model Rules (Pillar II)»:

  • Introduction of a supplementary tax as a «Qualified Domestic Minimum Top-Up Tax» (QDMTT) effective 1 January 2024, along with an «Income Inclusion Rule» (IIR) supplemental tax.
  • Delayed implementation of an «Undertaxed Payments Rule» (UTPR) supplemental tax beginning 1 January 2025.
  • In the Principality, like in the EU, the global minimum tax is also to be introduced for large domestic groups so as to comply with the ban on discrimination in the European Economic Area (EEA).
  • The «Individual and Corporation Act» (PGR) with its supplementary accounting provisions as a generally accepted accounting standard of the EEA member state Liechtenstein will serve as a starting point for the global minimum tax for large domestic as well as multinational groups with a group parent company in the Principality.
  • All legal entities, even foundations and trusts as well as partnerships as a business entity that are part of a multinational group of companies or a large domestic group, are affected.
  • The application of «transitional Safe Harbor Rules» as a relief for simplified calculation based on data from «Country-by-Country Reporting» is allowed during a transition period of three fiscal years.
  • Further transitional arrangements for multinational groups in the early stages of their international operations are provided for under the conditions set out in the GloBE Model Rules for five financial years. For large domestic groups, an exemption from the Liechtenstein supplementary tax is also provided for during five business years from the first application of this law.

The consultation draft can be consulted until 2 June 2023. Thereafter, it will be reviewed with the collected feedback and submitted to the Parliament in September 2023.

We highly recommend that all Liechtenstein entities attaining the respective thresholds analyze the GloBE rules in detail. 

The consultation period for the GloBE Act and amendment to the Tax Act (SteG) expired at the beginning of June 2023. The corresponding report and motion of the government is to be discussed in the Parliament in September 2023 so that an implementation of the global minimum tax can take place for the tax years from 2024.

We highly recommend that all Liechtenstein companies of any legal form (AG, GmbH, Stiftung, Anstalt, Trusts etc.) that meet the relevant thresholds analyse the GloBE rules as well as the acceptable and authorised accounting standards in detail.