Projet

ARTICLE 9

Dividends, interest and royalty payments between companies

1. Without prejudice to the application of domestic or agreement-based provisions for the prevention of fraud or abuse in Switzerland and in Member States, dividends paid by subsidiary companies to parent companies shall not be subject to taxation in the source State where:

- the parent company has a direct minimum holding of 25 % of the capital of such a

subsidiary for at least two years, and,

- one company is resident for tax purposes in a Member State and the other company is

resident for tax purposes in Switzerland, and,

- under any double tax agreements with any third States neither company is resident for

tax purposes in that third State, and,

- both companies are subject to corporation tax without being exempted and both adopt

the form of a limited company³.

³With regard to Switzerland, the term "limited company" covers:

- société anonyme/Aktiengesellschaft/società anonima;

- société à responsabilité limitée/Gesellschaft mit beschränkter Haftung/società a responsabilità limitata;

- société en commandite par actions/Kommanditaktiengesellschaft/società in accomandita per azioni.

AMP/EU/CH/en 20