The tax cooperation between Liechtenstein and Austria has been adjusted through the exchange of information. The new regulations are intended to keep the benefits and combat misuse.
The actual legislation is an amendment protocol to the taxation agreement between Liechtenstein and Austria, namely the withholding tax accord. According to a media release, it was signed by Liechtenstein's ambassador in Austria Her Serene Highness Maria Pia Kothbauer and Austrias Minister of Finance Hans Jörg Schelling. Since the beginning of 2014 the tax accord has formed the basis for the regularisation of untaxed assets of Austrian taxpayers. In their cases the names and assets were reported or the Austrian tax was paid. Extensive administrative or enforcement assistance is provided under the OECD standard.
An exemption clause has meant that in Austrias case the Automatic Exchange of Information (AIA) with the EU will enter into force from January 2017, rather than at the regular beginning of 2016. To prevent duplications, the responsible parties from both countries have discussed the withholding tax accord and worked together in partnership to reach new solutions. Consequently, the withholding tax accord will continue to apply to some accounts and securities accounts.
According to the media release, the actual application of Austrian taxation in relation to Liechtenstein asset structures is leading to the effective countering of tax evasion. In the future, the benefits of the tried and trusted bilateral agreement will be maintained. The media release emphasises the outstanding cooperation, which is to be continued through improvements, taking into account the international standards.