Filippo Giambrone, Aspetti di diritto tributario nazionale ed internazionale del Principato del Liechtenstein. La prospettiva svizzera sulla tassazione dei Trust, in Illyria’s, pp. 81-114.

The article delves into the evolution of Liechtenstein's tax legislation since January 1, 2011, with a specific focus on the taxation of trusts. This reform has modernized the country's tax system, enhancing its competitiveness and aligning it with European and international standards of transparency and tax fairness, as well as BEPS regulations. Businesses and legal entities now enjoy optimal conditions, thanks to revisions that have made the tax system more transparent and compliant with international standards. This underscores the importance of Automatic Exchange of Information and adherence to BEPS requirements.Legal entities in Liechtenstein are subject to standard taxation based on their registered office or place of effective administration within the country. The reform introduced a 12.5% income tax rate with a minimum of CHF 1,800 annually and adopted the OECD principle of arm's length comparison for revenues and expenses. Since 2019, losses on participations in legal entities are no longer tax-deductible. Withholding tax on dividends, interests, and royalties has been eliminated, and foreign withholding taxes can be limited or reimbursed under international treaties.Private Wealth Structures, including trusts, benefit from a favorable tax regime with a minimum annual income tax of CHF 1,800. This applies to legal entities without significant economic activities. Switzerland emerges as a key player in trust management, often involving Swiss trustees, including lawyers as advisors and trustees. Since 2020, Switzerland has strengthened the regulation of trustees and is working to revise its fiduciary law, bringing it closer to the Common Law Trust model.The article highlights the complexities of trusts in civil law, addressing issues such as the division between legal and equitable ownership, as well as the concept of tracing. The adoption of arbitration clauses in trusts is becoming common to maintain confidentiality and prevent disputes, although trust arbitration is still in its early stages in Switzerland. In conclusion, the abstract emphasizes the importance of Switzerland and Liechtenstein in the international execution of arbitral awards, particularly in relation to the New York Convention. It underlines the need for further exploration of the effectiveness of enforceability of judgments based on unilateral arbitration clauses, highlighting the critical role of these countries in the international legal and fiscal landscape.