Austria concluded a number of important agreements

04.02.2013

 Austria started the process of “tax harmonization” in last April when the agreement with Switzerland about withholding tax (came into force on 1^st January 2013).

Provisions of the Agreement concerned the tax levied from undeclared assets of the Austrians keeping with Switzerland’s bank accounts, as well as annual collection of the future investment income withholding tax. And though it will take about 6 month for the Treasure to start getting tax yield from this agreement the government keeps stressing the positive dynamic.

And then last week Lichtenstein’s Prime Minister and Austrian Minister of Finance finished negotiations and on 30 January signed similar treaty and in addition to it the protocol making alterations and additions in the Double Taxation Avoidance Agreement between two states.

The text of the agreement is similar to those bilateral treaties, made with Switzerland and Germany and contains provisions about the taxation of Austrians’ assets kept with Lichtenstein’s bank accounts, as well as administered by the managing companies especially by funds in Lichtenstein.

The changes also concerned minimal and maximum tax rate – now it amounts 15% and 30% respectively. Banks and asset managers in Lichtenstein like trustee will be obliged to pay withholding tax on previously acquired assets and future investment income as well as on payment to “clouded” funds and payment of these funds to their beneficiaries.

On the basis of http://www.finance.gov.au/

Expert’s opinion

 “Switzerland keeps signing agreements on exchange of information on tax matters and on Information disclosure about undeclared investors on the territory of the country.

Unfortunately, now it is not the best time for Switzerland. Baking secrecy has gone to history and at the current moment that is Austrian banks who protects confidentiality and privacy of their clients.

But what is so surprising that is despite the fact that reputation of Swiss banks cracked a lot of our compatriots are willing to get residence permit in this country, to buy real estate and to enjoy civilization. It may be that the power of habit that “Switzerland is safety” is stronger than all reasonable arguments.”

Irina Lomakina ( Director of Moscow office of “Honest&Bright” Company)