On January 29^th, 2012, a treaty between the Republic of Austria and the Principality of Liechtenstein on cooperation in the area of taxation as well as a Protocol amending the existing tax treaty between Austria and Liechtenstein were signed in Vaduz. The first-mentioned agreement provides for both the regularisation of capital deposited in Liechtenstein for the past, including a tax amnesty concerning undeclared income, as well as the proper taxation of current capital yields derived from Liechtenstein bank accounts in future years. This part of the treaty closely follows the treaty between Austria and Switzerland. In addition, the treaty with Liechtenstein also covers foundations, trusts, and other similar financial schemes; in such cases, it extends the concept of paying agents to trustees. Heinz Jirousek sets out the background for this approach and describes the main features of these treaties.