The government of Liechtenstein taxes both personal and business income and principal (wealth). The basic rate of personal income tax is 1.2%. When combined with the additional income tax imposed by the communes, the combined income tax rate is 17.82%. An additional income tax of 4.3% is levied on all employees under the country's social security program. This rate is higher for the self-employed, up to a maximum of 11%, making the maximum income tax rate about 29% in total. Tax on income from employment is collected through monthly withholdings by the employer.
The maximum business income tax rate is 18-20%.
August 2009, the British Government Department, HM Revenue & Customs, agreed with the Alpine tax haven to start exchanging information. It is believed that up to 5,000 British investors have roughly £3billion stashed in accounts and trusts in the country.