Liechtenstein, Austria Close To Tax Agreement
Friday, January 18, 2013
Liechtenstein’s Prime Minister Klaus Tschütscher has confirmed plans
to conclude a tax package with Austria shortly.
During a recent working visit to Vienna, Tschütscher held talks with Austrian
Finance Minister Maria Fekter, with the discussions focusing on negotiations
on a bilateral double taxation and withholding tax agreement between the two
Underlining the strong bond between the neighboring countries as well as the
close economic ties between Austria and Liechtenstein, Tschütscher revealed
that the road map has been set and both parties aim to sign the joint tax package
According to the Liechtenstein prime minister, international tax conformity
is a key framework condition of the Principality’s tax policy. While underscoring
his conviction that national tax sovereignty must be maintained, Tschütscher
nevertheless emphasized the importance of cross-border tax cooperation.
During the course of his meeting with Fekter, Tschütscher alluded to the
cornerstones of the Liechtenstein tax policy, insisting that the country’s
tax law is 100% compatible with the European Union (EU).
The bilateral tax accord between Austria and Liechtenstein, aimed at resolving
the issue of Austrian citizens’ undeclared and untaxed bank accounts in
the Principality, is based on a deal similar to that concluded between Austria
and Switzerland, which entered into force at the beginning of the year.
The Swiss-Austrian tax deal provides for a withholding tax to be levied on
undisclosed assets held by Austrian residents in Swiss banks to regularize the
accounts and imposes an annual withholding tax on future investment income.
Unlike the treaty brokered with Switzerland, the accord being negotiated with
Liechtenstein is expected to encompass undeclared assets held in both foundations
and trusts in Liechtenstein.