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| Liechtenstein, Austria Hold Tax Talks |
by Ulrika Lomas, Tax-News.com, Brussels
Tuesday, June 22, 2010
During a working visit to Vienna, designed to maintain excellent relations between
the two countries, Liechtenstein’s Prime Minister Klaus Tschütscher
met with Austria’s Chancellor Werner Faymann, with negotiations focussing
on financial market policy and on international tax matters.
Liechtenstein’s Prime Minister Tschütscher took the opportunity
to outline the country’s 2010-2014 financial plan, emphasizing the need
for sustainable budgetary consolidation, in the order of CHF160m (EUR117m) annually,
and underlining the need for significant action to be taken in order to achieve
a balanced budget. Regarding cuts in government expenditure, this includes abolishing
or reducing existing state services, and reducing state consumption. Tschütscher
noted that the country’s financial plan would be subject to an annual
review and to revision where necessary.
During the course of the discussions held at the chancellery in Vienna, the
total revision of tax law in Liechtenstein was also alluded to. The importance
of establishing fiscal security, designed to further develop Liechtenstein as
an economic location, was highlighted. Prime Minister Tschütscher also
emphasized the fact that fiscal incentives are due to be created for the country’s
young entrepreneurs shortly, through the tax system. Tax reform in Liechtenstein
is due to enter into force on January 1, 2011.
Chancellor Faymann and Prime Minister Tschütscher agreed to regularly
exchange information and to continue to work closely together in future.
.
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