Austria To Agree Swiss-Style Tax Deal With Liechtenstein
Tuesday, January 15, 2013
During an upcoming working visit to Vienna, Liechtenstein’s Prime Minister
Klaus Tschütscher is due to hold talks with key ministers from the Austrian
chancellery and from the finance ministry, with the discussions focusing on the
"imminent conclusion" of a bilateral tax agreement between the two countries.
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 reportedly 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.
Tschütscher is due to meet with Austrian Chancellor Werner Faymann, with
Austrian Vice Chancellor Michael Spindelegger, as well as with Austria’s
Finance Minister Maria Fekter and Economy Minister Reinhold Mitterlehner.
An agreement on a treaty is expected by the end of January.