Proposal for a Council Decision on the conclusion of the Agreement between the European Community and the Swiss Confederation providing for measures equivalent to those laid down in Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments and the accompanying Memorandum of Understanding
Date: 2004-02-10
Institutions: European Commission
Subjects: Switzerland, agreement (EU), interest, savings, tax on income, tax system

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 10.2.2004 
COM(2004) 75 final 

2004/0027 (CNS) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Agreement between the European Community and the Swiss 
Confederation providing for measures equivalent to those laid down in Council 
Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of 
interest payments and the accompanying Memorandum of Understanding 

(presented by the Commission) 

EN 

   EN 

 
 
 
  
 
EXPLANATORY MEMORANDUM 

By its Decision of 16 October 2001, the Council authorised the Commission to negotiate with 
Switzerland and five other third countries (United States of America, Andorra, Liechtenstein, 
Monaco and San Marino) appropriate agreements for securing the adoption by these countries 
of  measures  equivalent  to  those  to  be  applied  within  the  Community  to  ensure  effective 
taxation of savings income in the form of interest payments. The Commission was to conduct 
these  negotiations  in  close  conjunction  with  the  Presidency  of  the  Council  and  in  close  and 
regular  consultation  with  the  High-Level  Working  Party  set  up  by  Coreper  Decision  of  13 
June 20011 and appointed by the Council as a special committee to assist the Commission in 
that task. 

Following  the  Decision  of  16  October  2001,  the  Commission  wrote  to  the  above  third 
countries  asking  for  negotiations  to  commence.  However,  it  was  only  after  the  ECOFIN 
Council's  approval  of  a  text  of  the  draft  Directive  on  13  December  2001,  that  these 
negotiations could really begin. Despite having adopted its negotiating mandate on taxation of 
savings income on 30 January 2002, Switzerland initially refused to commence negotiations 
on  this  issue  until  the  Council  had  adopted  a  series  of  negotiating  mandates  in  other  fields. 
Following  the  adoption  by  the  Council  of  those  other  mandates  on  17  June  2002,  formal 
negotiations with Switzerland on taxation of savings income commenced on 18 June 2002. A 
large  number  of  meetings  at  both  political  and  technical  level  have  been  held  since.  In 
accordance with the Council Decision of 16 October 2001, the Commission conducted these 
negotiations  in  close  conjunction  with  the  successive  Presidencies  of  the  Council.  The 
Commission made regular oral progress reports of these negotiations to the Council and the 
Parliament  and  presented  a  Communication  on  the  negotiations  with  third  countries  on 
taxation of savings income to the ECOFIN Council of 3 December 20022.  

At  the  ECOFIN  Council's  request,  negotiations  with  Switzerland  on  taxation  of  savings 
income continued in 2003. Between January and May 2003 the Commission presented several 
working  drafts  of  the  Agreement  to  the  Council  which  were  examined  by  the  High-Level 
Working  Party.  In  the  course  of  negotiations,  the  Swiss  side  requested  the  extension  to 
Switzerland of the regimes provided for in Council Directive 90/435/EEC of 23 July 19903 on 
the common system of taxation applicable in the case of parent companies and subsidiaries of 
different Member States and in Council Directive 2003/49/EC of 3 June 2003 on a common 
system  of  taxation  applicable  to  interest  and  royalty  payments  made  between  associated 
companies of different Member States4. The Commission presented the Swiss request to the 
Council.  

On 3 June 2003, the Council stated that the draft Agreement with Switzerland, as submitted 
by the Commission on 28 May 2003 constituted the final offer for an Agreement between the 
EU and this country. The draft approved by Council includes the above Swiss request (Article 
15 of the draft Agreement). However, in respect of Spain, the draft provides that Article 15 
will  only  apply  from  the  entry  into  force  of  a  bilateral  agreement  between  Spain  and 
Switzerland on the exchange of information on request in cases of tax fraud or the like with 
respect to items of income not subject to this Agreement but covered by a bilateral convention 
or agreement between the two countries.  

1 
2 
3 
4 

OJ C 183, 29.6.2001, p.1 
SEC (2002) 1287 final, 27.11.2002 
OJ L 225, 20.08.1990, p.6 
OJ L 157, 26.06.2003, p.49 

2 

 
 
  
 
                                                 
In  approving  the  draft  Agreement,  the  Council  took  the  view  that  the  Community  does  not 
have exclusive competence to conclude an agreement with Switzerland on the tax treatment of 
dividends  and  of  interest  and  royalty  payments  as  mentioned  in  article  15  of  the  draft 
Agreement.  Delegations  agreed  nevertheless,  by  way  of  exception  and  without  creating  a 
precedent, that Member States will not exercise their competence in this particular case. The 
Council and the Commission also declared that the exercise of competence by the Community 
in  respect  of  article  15  of  the  Agreement  does  not  affect  existing  bilateral  agreements  with 
other  third  countries  and  Member  States  maintain  their  competence  to  conclude  bilateral 
agreements  with  other  third  countries  on  the  tax  treatment  of  dividends  and  of  interest  and 
royalty payments between companies. 

The  Agreement  is  now  being  presented  to  the  Council  to  be  concluded.  The  Agreement  is 
accompanied by an ancillary Memorandum of Understanding (hereinafter MoU) between the 
Swiss  Confederation,  the  European  Community  and  its  Member  States,  which  was  also 
approved in draft form. This MoU inter alia commits Switzerland and Member States to enter 
into  bilateral  negotiations  with  a  view  to  including  in  their  respective  double  taxation 
conventions  provisions  on  exchange  of  information  on  request  for  cases  falling  within  the 
concept of "tax fraud or the like" with respect to items of income not subject to the Agreement 
but covered by their respective conventions, and with a view to defining individual categories 
of cases falling under "the like" in accordance with the procedure of taxation applied by those 
countries. In accordance with the ECOFIN Council conclusions of 21 January 2003, the MoU 
also  confirms  that,  during  the  transitional  period  provided  for  in  Council  Directive 
2003/48/EC of 3 June 20035, the European Community will enter into discussions with other 
important  financial  centres  with  a  view  to  promoting  the  adoption  by  those  jurisdictions  of 
measures equivalent to those to be applied by the Community. Finally, the MoU provides that 
the  agreed  measures  will  be  implemented  in  good  faith  and  that  parties  will  not  act 
unilaterally  to  undermine  this  arrangement  without  due  cause.  Should  any  significant 
difference between the coverage of Council Directive 2003/48/EC and that of the Agreement 
be discovered, the Contracting Parties will immediately enter into consultations with a view to 
ensuring  that  the  equivalent  nature  of  the  measures  provided  for  in  the  Agreement  is 
maintained. 

The  Commission  considers  that  the  text  is  in  accordance  with  the  negotiating  directives 
adopted by the Council on 16 October 2001. 

In order to enable the Agreement providing for measures equivalent to those laid down in the 
Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of 
interest  payments,  and  the  accompanying  Memorandum  of  Understanding,  to  be  concluded, 
the Commission proposes that the Council approve the attached proposal for a decision on the 
conclusion  of  the  Agreement.  Article  300  (2)  of  the  Treaty  establishing  the  European 
Community  stipulates  that  the  Council  shall  act  unanimously  when  the  agreement  covers  a 
field for which unanimity is required for the adoption of internal rules. As the internal rules in 
the  field  covered  by  this  Agreement  have  been  adopted  on  the  basis  of  Article  94  of  the 
Treaty,  the  Commission  considers  that  the  Council  should  act  unanimously  to  approve  the 
proposal for a decision. According to the ECOFIN Council conclusions of 21 January 2003, 
the Council agrees that the Agreement with the Swiss Confederation should be entered into on 
the basis of unanimity.  

5 

OJ L 157, 26.06.2003, p.38 

3 

 
 
  
 
                                                 
2004/0027 (CNS) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of the Agreement between the European Community and the Swiss 
Confederation providing for measures equivalent to those laid down in Council 
Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of 
interest payments and the accompanying Memorandum of Understanding 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
94 in conjunction with the first subparagraph of Article 300 (2) thereof, 

Having regard to the proposal from the Commission6, 

Having regard to the opinion of the European Parliament7, 

Whereas: 

(1) 

(2) 

(3) 

On  16  October  2001,  the  Council  authorised  the  Commission  to  negotiate  with  the 
Swiss Confederation an appropriate agreement for securing the adoption by the Swiss 
Confederation of measures equivalent to those to be applied within the Community to 
ensure effective taxation of savings income in the form of interest payments. 

The application of the provisions of Council Directive 2003/48/EC of 3 June 2003 on 
taxation of savings income in the form of interest payments depends on the application 
by  the  Swiss  Confederation  of  measures  equivalent  to  those  contained  in  this 
Directive, in accordance with an Agreement entered into by the Swiss Confederation 
with the European Community. 

In recognition of its co-operation on taxation of savings income, the Community has 
decided  to  grant  the  request  of  the  Swiss  Confederation  for  the  inclusion  in  the 
Agreement  of  measures  equivalent  to  the  regimes  provided  for  in  Council  Directive 
90/435/EEC of 23 July 1990 on the common system of taxation applicable in the case 
of  parent  companies  and  subsidiaries  of  different  Member  States  and  in  Council 
Directive 2003/49/EC of 3 June 2003 on a common system of taxation applicable to 
interest  and  royalty  payments  made  between  associated  companies  of  different 
Member States.  

6 
7 

OJ C …, ……..2003, p… 
OJ C …, ……..2003, p… 

4 

 
 
  
 
                                                 
(4) 

It is necessary to approve the Agreement between the European Community and the 
Swiss Confederation providing for measures equivalent to those laid down in Council 
Directive  2003/48/EC  of  3  June  2003  on  taxation  of  savings  income  in  the  form  of 
interest payments, and the accompanying Memorandum of Understanding. 

HAS DECIDED AS FOLLOWS:  

Article 1 

The Agreement between the European Community and the Swiss Confederation providing for 
measures equivalent to those laid down in Council Directive 2003/48/EC of 3 June 2003 on 
taxation  of  savings  income  in  the  form  of  interest  payments  and  the  accompanying 
Memorandum of Understanding are hereby approved on behalf of the European Community.  

The text of the Agreement and the accompanying Memorandum of Understanding is attached 
to this decision. 

Article 2 

The President of the Council is hereby authorised to designate the persons empowered to sign 
the Agreement and the accompanying Memorandum of Understanding in order to express the 
consent of the European Community. 

The President of the Council shall effect the notification provided for in Article 17 (2) of the 
Agreement on behalf of the European Community8. 

Article 3 

Article 4 

This Decision shall be published in the Official Journal of the European Union. 

Done at Brussels,  

For the Council 
The President 

8 

The date of entry into force of the Agreement will be published in the Official Journal of the European 
Union by the General Secretariat of the Council. 

5 

 
 
  
 
 
 
                                                 
ANNEX  

Agreement between the European Community and the Swiss Confederation providing for 
measures equivalent to those laid down in Council Directive 2003/48/EC of 3 June 2003 on 
taxation of savings income in the form of interest payments 

6 

 
 
  
 
Agreement 

between 

the European Community  

and 

the Swiss Confederation  

providing for measures equivalent to those laid down in Council Directive 2003/48/EC of 3 
June 2003 on taxation of savings income in the form of interest payments 9 

The European Community, hereinafter referred to as "Community",  

and 

the Swiss Confederation, hereinafter referred to as "Switzerland",  

or as a “Contracting Party” or the “Contracting Parties” as the context may require, 

have agreed to conclude the following Agreement:  

Article 1 

Retention by Swiss Paying Agents 

1. 

2. 

3. 

Interest payments which are made to beneficial owners within the meaning of Article 
4 who are residents of a Member State of the European Union, hereinafter referred to 
as  "Member  States"  or  "Member  State"  as  the  context  may  be,  by  a  paying  agent 
established on the territory of Switzerland, shall, subject to paragraph 2 and Article 2 
below, be subject to a retention from the amount of the interest payment. The rate of 
retention shall be 15% during the first three years from the date of application of this 
Agreement, 20% for the subsequent three years and 35% thereafter. 

Interest  payments  made  on  debt-claims  issued  by  debtors  who  are  residents  of 
Switzerland  or  pertaining  to  permanent  establishments  of  non-  residents  located  in 
Switzerland  shall  be  excluded  from  the  retention.  For  the  purposes  of  this 
Agreement,  the  term  “permanent  establishment”  shall  have  the  meaning  that  it  has 
under the relevant double taxation convention between Switzerland and the state of 
residence  of  the  debtor.  In  the  absence  of  such  a  convention,  the  term  “permanent 
establishment”  means  a  fixed  place  of  business  through  which  the  business  of  a 
debtor is wholly or partly carried on.  

However, in case Switzerland reduces the rate of its anticipatory tax on Swiss source 
interest payments to individuals resident in Member States below 35%, it shall levy a 
retention on such interest payments. The rate of such retention shall be the difference 

9 

Hereafter referred to as the Directive 

7 

 
 
  
 
                                                 
between  the  rate  of  retention  provided  for  in  paragraph  1  and  the  new  rate  of 
anticipatory tax. However, it shall not exceed the rate provided for in paragraph 1. 

If Switzerland reduces the scope of application of its anticipatory tax law on interest 
payments  to  individuals  resident  in  Member  States,  any  interest  payments  thus 
excluded from anticipatory tax shall become subject to retention at the rates provided 
for in paragraph 1  

Paragraph 2 does not apply to interest paid by Swiss investment funds which at the 
time of the entry into force of this Agreement or at a later date are exempted from 
Swiss  anticipatory  tax  on  their  payments  to  individuals  who  are  residents  of  a 
Member State. 

Switzerland shall take the necessary measures to ensure that the tasks required for the 
implementation  of  this  Agreement  are  carried  out  by  paying  agents  established 
within  the  territory  of  Switzerland  and  specifically  provide  for  provisions  on 
procedures and penalties. 

Article 2 

Voluntary disclosure 

Switzerland  shall  provide  for  a  procedure  which  allows  the  beneficial  owner  as 
defined  in  Article  4  to  avoid  the  retention  specified  in  Article  1  by  expressly 
authorising  his  paying  agent  in  Switzerland  to  report  the  interest  payments  to  the 
competent  authority  of  that  country.  Such  authorisation  shall  cover  all  interest 
payments made to the beneficial owner by that paying agent.  

The minimum amount of information to be reported by the paying agent in case of 
express authorisation by the beneficial owner shall consist of: 

a) 

the  identity  and  residence  of  the  beneficial  owner  established  in  accordance 
with Article 5 of this Agreement; 

b) 

the name and address of the paying agent; 

c) 

d) 

the  account  number  of  the  beneficial  owner  or,  where  there  is  none, 
identification of the debt-claim giving rise to the interest, and 

the amount of the interest payment calculated in accordance with Article 3 of 
this Agreement. 

The competent authority of Switzerland shall communicate the information referred 
to in Paragraph 2 to the competent authority of the Member State of residence of the 
beneficial  owner.  Such  communications  shall  be  automatic  and  shall  take  place  at 
least once a year, within 6 months following the end of the tax year in Switzerland, 
for all interest payments made during that year.  

Where the beneficial owner opts for this voluntary disclosure procedure or otherwise 
declares his interest income obtained from a Swiss paying agent to the tax authorities 
in his Member State of residence, the interest income concerned shall be subject to 

8 

4. 

5. 

1. 

2. 

3. 

4. 

 
 
  
 
 
taxation  in  that  Member  State  at  the  same  rates  as  those  applied  to  similar  income 
arising in that State. 

Article 3 

Basis of assessment for retention 

1. 

The paying agent shall withhold the retention in accordance with Article1 paragraph 
1 of this Agreement as follows: 

a) 

b) 

c) 

in the case of an interest payment within the meaning of Article 7 subparagraph 
1 (a) of this Agreement: on the gross amount of interest paid or credited; 

in the case of an interest payment within the meaning of Article 7 subparagraph 
1 (b) or (d) of this Agreement: on the amount of interest or revenue referred to 
in those subparagraphs; 

in the case of an interest payment within the meaning of Article 7 subparagraph 
1  (c)  of  this  Agreement:  on  the  amount  of  interest  referred  to  in  that 
subparagraph. 

2. 

3. 

For the purposes of subparagraphs 1 (a), (b) and (c), the retention shall be deducted 
on  a  pro  rata  basis  for  the  period  during  which  the  beneficial  owner  holds  a  debt-
claim.  If  the  paying  agent  is  unable  to  determine  the  period  on  the  basis  of  the 
information  made  available  to  him,  the  paying  agent  shall  consider  the  beneficial 
owner  to  have  been  in  possession  of  the  debt-claim  for  the  entire  period  of  its 
existence, unless the latter provides evidence of the date of acquisition.  

Taxes  and  retentions  other  than  the  retention  provided  for  in  this  agreement  on  the 
same  payment  of  interest  shall  be  credited  against  the  amount  of  the  retention 
calculated in accordance with this article.  

4. 

Paragraphs 1, 2 and 3 are without prejudice to paragraph 2 of Article 1. 

Article 4 

Definition of beneficial owner 

1. 

For  the  purposes  of  this  Agreement  “beneficial  owner“  shall  mean  any  individual 
who receives an interest payment or any individual for whom an interest payment is 
secured,  unless  such  individual  can  provide  evidence  that  the  interest  payment  was 
not received or secured for his or her own benefit. An individual is not deemed to be 
the beneficial owner when he or she: 

a) 

b) 

acts as a paying agent within the meaning of Article 6 of this Agreement or 

acts  on  behalf  of  a  legal  person,  an  investment  fund  or  a  comparable  or 
equivalent body for common investments in securities or 

9 

 
 
  
 
c) 

acts  on  behalf  of  another  individual  who  is  the  beneficial  owner  and  who 
discloses to the paying agent his or her identity and state of residence. 

2. 

Where a paying agent has information suggesting that the individual who receives an 
interest  payment  or  for  whom  an  interest  payment  is  secured  may  not  be  the 
beneficial  owner,  it  shall  take  reasonable  steps  to  establish  the  identity  of  the 
beneficial  owner.  If  the  paying  agent  is  unable  to  identify  the  beneficial  owner,  it 
shall treat the individual in question as the beneficial owner. 

Article 5 

Identity and residence of beneficial owners 

In order to establish the identity and residence of the beneficial owner as defined in Article 4, 
the paying agent shall keep a record of the name, first name, address and residence details in 
accordance  with  the  Swiss  legal  provisions  against  money  laundering.  For  contractual 
relations entered into, or transactions carried out in the absence of contractual relations, on or 
after 1 January 2004, for individuals presenting a passport or official identity card issued by a 
Member State who declare themselves to be resident in a country other than a Member State 
or Switzerland, residence shall be established by means of a tax residence certificate issued by 
the competent authority of the country in which the individual claims to be resident. Failing 
the  presentation  of  such  a  certificate,  the  Member  State  which  issued  the  passport  or  other 
official identity document shall be considered the country of residence.. 

Article 6 

Definition of paying agent 

For  the  purposes  of  this  Agreement,  “paying  agent”  in  Switzerland  shall  mean  banks  under 
Swiss banking law, securities dealers under the Federal Law on Stock Exchanges and Security 
Trading,  natural  and  legal  persons  resident  or  established  in  Switzerland,  partnerships  and 
permanent establishments of foreign companies, which even occasionally, accept, hold, invest 
or  transfer  assets  of  third  parties  or  merely  pay  or  secure  interest  in  the  course  of  their 
business. 

Article 7 

Definition of Interest Payment 

1. 

For the purposes of this Agreement “interest payment” shall mean: 

a) 

interest  paid,  or  credited  to  an  account,  relating  to  debt-claims  of  every  kind 
including  interest  paid  on  fiduciary  deposits  by  Swiss  paying  agents  for  the 
benefit of beneficial owners as defined in Article 4, whether or not secured by 
mortgage  and  whether  or  not  carrying  a  right  to  participate  in  the  debtor's 
profits, and in particular, income from government securities and income from 
bonds  or  debentures,  including  premiums  and  prizes  attaching  to  such 

10 

 
 
  
 
securities,  bonds  or  debentures,  but  excluding  interest  from  loans  between 
private  individuals  not  acting  in  the  course  of  their  business.  Penalty  charges 
for late payment shall not be regarded as interest payments; 

b) 

c) 

interest  accrued  or  capitalised  at  the  sale,  refund  or  redemption  of  the  debt-
claims referred to in (a); 

income  deriving  from  interest  payments  either  directly  or  through  an  entity 
referred to in Article 4, paragraph 2 of the Directive distributed by  

(i) 

undertakings for collective investment domiciled in a Member State,  

(ii) 

an entity domiciled in a Member State, which exercises the option under 
Article  4,  paragraph 3 of the  Directive  and informs the paying agent of 
this fact, 

(iii)  undertakings for collective investment established outside the territory of 

the Contracting Parties, 

(iv)  Swiss investment funds which at the time of the entry into force of this 
Agreement or at a later date are exempted from Swiss anticipatory tax on 
their payments to individuals who are residents of a Member State. 

d) 

income  realised  upon  the  sale,  refund  or  redemption  of  shares  or  units  in  the 
following  undertakings  and  entities,  if  they  invest  directly  or  indirectly  via 
other undertakings for collective investment or entities referred to below more 
than 40% of their assets in debt-claims as referred to in (a): 

(i) 

undertakings for collective investment domiciled in a Member State,  

(ii) 

entities  domiciled  in  a  Member  State,  which  exercise  the  option  under 
Article 4 paragraph 3 of the Directive and which inform the paying agent 
of this fact, 

(iii)  undertakings for collective investment established outside the territory of 

the Contracting Parties.  

(iv)  Swiss investment funds which at the time of the entry into force of this 
Agreement or at a later date are exempted from Swiss anticipatory tax on 
their payments to individuals who are residents of a Member State. 

2. 

3. 

As regards subparagraph 1 (c), when a paying agent has no information concerning 
the proportion of the income which derives from interest payments, the total amount 
of the income shall be considered an interest payment. 

As regards subparagraph 1 (d), when a paying agent has no information concerning 
the percentage of the assets invested in debt-claims or in shares or units as defined in 
that subparagraph, that percentage shall be considered to be above 40 %. Where he 
cannot determine the amount of income realised by the beneficial owner, the income 
shall be deemed to correspond to the proceeds of the sale, refund or redemption of 
the shares or units. 

11 

 
 
  
 
4. 

5. 

6. 

1. 

2. 

1. 

2. 

Income  relating  to  undertakings  or  entities  which  have  invested  up  to  15%  of  their 
assets  in  debt  claims  in  the  sense  of  subparagraph  1  (a)  shall  not  be  considered  an 
interest payment in accordance with subparagraph 1(c) and (d). 

The  percentage  referred  to  in  subparagraph  1  (d)  and  paragraph  3  shall  as  from  1 
January 2011 be 25 %. 

The  percentages  referred  to  in  subparagraph  1  (d)  and  paragraph  4  shall  be 
determined  by  reference  to  the  investment  policy  as  laid  down  in  the  fund  rules  or 
instruments  of  incorporation  of  the  undertakings  or  entities  concerned  and,  failing 
such rules, by reference to the actual composition of the assets of the undertakings or 
entities concerned. 

Article 8 

Revenue sharing 

Switzerland  shall  keep  25  %  of  the  revenue  generated  by  the  retention  under  this 
Agreement and transfer 75 % of the revenue to the Member State of residence of the 
beneficial owner. 

Such transfers shall take place for each year in one instalment per Member State at 
the  latest  within  a  period  of  6  months  following  the  end  of  the  tax  year  in 
Switzerland. 

Article 9 

Elimination of double taxation 

If interest received by a beneficial owner has been subject to retention by a paying 
agent  in  Switzerland,  the  Member  State  of  residence  for  tax  purposes  of  the 
beneficial  owner  shall  grant  him  a  tax  credit  equal  to  the  amount  of  the  retention. 
Where  this  amount  exceeds  the  amount  of  tax  due  on  the  total  amount  of  interest 
subject  to  retention  in  accordance  with  its  national  law,  the  Member  State  of 
residence  for  tax  purposes  shall  repay  the  excess  amount  of  tax  withheld  to  the 
beneficial owner. 

If  interest  received  by  a  beneficial  owner  has  been  subject  to  taxes  and  retentions 
other than as provided for in this Agreement and the Member State of residence for 
tax purposes grants a tax credit for such taxes and retentions in accordance with its 
national law or double taxation conventions, such other taxes and retentions shall be 
credited  before  the  procedure  in  paragraph  1  is  applied.  The  Member  State  of 
residence for tax purposes shall accept certificates issued by Swiss paying agents as 
proper  evidence  of  the  tax  or  retention  on  the  understanding  that  the  competent 
authority  of  the  Member  State  of  residence  for  tax  purposes  will  be  able  to  obtain 
from the Swiss competent authority verification of the information contained in the 
certificates issued by Swiss paying agents. 

12 

 
 
  
 
3. 

1. 

2. 

3. 

The Member State of residence for tax purposes of the beneficial owner may replace 
the  tax  credit  mechanism  referred  to  in  paragraphs  1  and  2  by  a  refund  of  the 
retention referred to in Article 1. 

Article 10 

Exchange of information 

The  competent  authorities  of  Switzerland  and  any  Member  State  shall  exchange 
information on conduct constituting tax fraud under the laws of the requested State, 
or the like for income covered by the Agreement. "The like" includes only offences 
with the same level of wrongfulness as is the case for tax fraud under the laws of the 
requested  State.  In  response  to  a  duly  justified  request,  the  requested  State  shall 
provide information with respect to matters that the requesting State is investigating, 
or may investigate, on a civil or criminal basis. Without prejudice to the scope of the 
exchange of information as defined in this paragraph, information shall be exchanged 
in  accordance  with  the  procedures  laid  down  in  the  double  taxation  conventions 
between  Switzerland  and  the  Member  States  and  shall  be  treated  as  confidential  in 
the manner provided therein. 

In  determining  whether  information  may  be  provided  in  response  to  a  request,  the 
requested State shall apply the statute of limitations applicable under the laws of the 
requesting State instead of the statute of limitations of the requested State. 

The  requested  State  shall  provide  information  where  the  requesting  State  has  a 
reasonable  suspicion  that  the  conduct  would  constitute  tax  fraud  or  the  like.  The 
requesting State’s suspicion of tax fraud or the like may be based on: 

a)  Documents,  whether  authenticated  or  not,  and  including  but  not  limited  to 

business records, books of account, or bank account information; 

b) 

Testimonial information from the taxpayer; 

c) 

Information  obtained  from  an  informant  or  other  third  person  that  has  been 
independently corroborated or otherwise is likely to be credible; or 

d)  Circumstantial evidence. 

4. 

Switzerland shall enter into bilateral negotiations with each of the Member States in 
order to define individual categories of cases falling under "the like" in accordance 
with the procedure of taxation applied by those countries. 

Article 11 

Competent Authorities 

For the purposes of this Agreement the competent authorities shall mean those state instances 
listed in annex 1. 

13 

 
 
  
 
Article 12 

Consultation 

If any disagreement arises between the competent authority of Switzerland and one or more of 
the  other  competent  authorities  referred  to  in  Article  11  of  this  Agreement  as  to  the 
interpretation or application of this Agreement, they shall endeavour to resolve this by mutual 
agreement.  They  shall  immediately  notify  the  European  Commission  and  the  competent 
authorities of the other Member States of the results of their consultations. In relation to issues 
of  interpretation  the  European  Commission  may  take  part  in  consultations  at  the  request  of 
any of the competent authorities. 

Article 13 

Review 

1. 

2. 

3. 

4. 

The Contracting Parties shall consult each other  at least every three years  or  at  the 
request  of  either  Contracting  Party  with  a  view  to  examining  and  -  if  deemed 
necessary  by  the  Contracting  Parties  –  improving  the  technical  functioning  of  the 
Agreement and assessing international developments. The consultations shall be held 
within one month of the request or as soon as possible in urgent cases. 

On the basis of such an assessment, the Contracting Parties may consult each other in 
order  to  examine  whether  changes  to  the  Agreement  are  necessary  taking  into 
account international developments. 

As  soon  as  sufficient  experience  of  the  full  implementation  of  article  1  (1)  of  the 
agreement  is  available,  the  Contracting  Parties  shall  consult  each  other  in  order  to 
examine  whether  changes  to  the  Agreement  are  necessary  taking  into  account 
international developments. 

For the purposes of the consultations referred to above each Contracting Party shall 
inform the other Contracting Party of possible developments which could affect the 
proper functioning of this Agreement. This shall also include any relevant agreement 
between one of the Contracting Parties and a third country. 

Article 14 

Relationship to bilateral Double Taxation Conventions 

The  provisions  of  the  double  taxation  conventions  between  Switzerland  and  the  Member 
States shall not prevent the levying of the retention for which this Agreement provides. 

14 

 
 
  
 
Article 15 

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 company10. 

2. 

Without prejudice to the application of domestic or agreement based provisions for 
the prevention of fraud or abuse, in Switzerland and in Member States, interest and 
royalty  payments  made  between  associated  companies  or 
their  permanent 
establishments shall not be subject to taxation in the source state, where: 

– 

– 

– 

– 

such companies are affiliated by a direct minimum holding of 25 % for at least 
two years or are both held by a third company which has directly a minimum 
holding of 25 % both in the capital of the first company, and in the capital of 
the second company for at least two years, and; 

where a company is resident (for tax purposes) or a permanent establishment is 
located in a Member State and the other company is resident (for tax purposes) 
or other permanent establishment located in Switzerland, and; 

under any double tax agreements with any third states none of the companies is 
resident  (for  tax  purposes)  in  that  third  state  and  none  of  the  permanent 
establishments is located in that third state, and; 

all  companies  are  subject  to  corporation  tax  without  being  exempted  in 
particular  on  interest  and  royalty  payments  and  each  adopts  the  form  of  a 
limited company10. 

However, where the Council Directive on a common system of taxation applicable to 
interest  and  royalty  payments  made  between  associated  companies  of  different 
Member  States  provides  for  a  transitional  period  as  regards  a  given  Member  State, 

10 

With 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 

15 

 
 
  
 
                                                 
 
 
 
3. 

1. 

that  State  shall  only  ensure  provision  of  the  above  arrangements  on  interest  and 
royalty payments after the expiry of that period. 

Existing  double  taxation  agreements  between  Switzerland  and  the  Member  States 
which  provide  for  a  more  favourable  taxation  treatment  of  dividends,  interest  and 
royalty payments at the time of adoption of this Agreement shall remain unaffected. 

Article 16 

Transitional provisions for negotiable debt securities11 

From the date of application of this Agreement for as long as at least one Member 
State  also  applies  similar  provisions,  and  until  31  December  2010  at  the  latest 
domestic  and  international  bonds  and  other  negotiable  debt  securities  which  have 
been first issued before 1 March 2001 or for which the original issuing prospectuses 
have been approved before that date by the competent authorities of the issuing state 
shall not be considered as debt-claims within the meaning of Article 7 paragraph 1 
(a)  of  this  Agreement,  provided  that  no  further  issues  of  such  negotiable  debt 
securities are made on or after 1 March 2002. 

However,  for  as  long  as  at  least  one  Member  State  also  applies  similar  provisions, 
the  provisions  of  this  article  shall  continue  to  apply  beyond  31  December  2010  in 
respect of negotiable debt securities: 

– 

– 

– 

which contain gross-up and early redemption clauses and 

where  the  paying  agent,  as  defined  in  article  6,  is  established  in  Switzerland 
and 

that paying agent pays interest directly to, or secures the payment of interest for 
the immediate benefit of, a beneficial owner resident in a Member State. 

If  and  when  all  Member  States  cease  to apply  similar  provisions,  the  provisions  of 
this article shall continue to apply only in respect of those negotiable securities: 

– 

– 

– 

which contain gross-up and early redemption clauses and 

where the issuer's paying agent is established in Switzerland and  

that paying agent pays interest directly to, or secures the payment of interest for 
the immediate benefit of, a beneficial owner resident in a Member State. 

If a further issue is made on or after 1 March 2002 of an aforementioned negotiable 
debt security issued by a Government or a related entity acting as a public authority 
or whose role is recognised by an international Agreement (listed in Annex 2 to this 
Agreement), the  entire issue  of  such  a security, consisting of the original issue and 
any further issue shall be considered a debt-claim within the meaning of Article 7 (1) 
(a). 

11 

As in the Directive, these transitional provisions  also apply to negotiable debt securities held through 
investment funds 

16 

 
 
  
 
                                                 
2. 

1. 

2. 

3. 

4. 

1. 

2. 

If a further issue is made on or after 1 March 2002 of an aforementioned negotiable 
debt security issued by any other issuer not covered by the previous sentence, such 
further issue shall be considered a debt-claim within the meaning of Article 7 (1) (a). 

This Article does not prevent Switzerland and the Member States from continuing to 
levy  a  tax  on  revenues  deriving  from  the  aforementioned  negotiable  debt-claims  in 
paragraph 1 in accordance with their national law. 

Article 17 

Signing, Entry into force and Duration of Validity 

This  Agreement  requires  ratification  or  approval  by  the  Contracting  Parties  in 
accordance  with  their  own  procedures.  The  Contracting  Parties  shall  notify  each 
other of the completion of these procedures. The Agreement shall enter into force on 
the first day of the second month following the last notification. 

Subject to the fulfilment of their constitutional requirements concerning entering into 
international agreements and without prejudice to Article 18 Switzerland, and where 
applicable the Community shall effectively implement and apply this Agreement by 
1 January 2005 and notify each other thereof. 

This Agreement shall remain in force until terminated by a Contracting Party. 

Either Contracting Party may terminate this Agreement by giving notice to the other. 
In  such  a  case,  the  Agreement  shall  cease  to  have  effect  twelve  months  after  the 
serving of notice. 

Article 18 

Application and Suspension of Application 

The  application  of  this  Agreement  shall  be  conditional  on  the  adoption  and 
implementation  by  the  dependent  or  associated  territories  of  the  Member  States 
mentioned in the Council decision of Feira of June 19/20, 2000, as well as the United 
States of America, Andorra, Liechtenstein, Monaco and San Marino, respectively, of 
measures which conform with or are equivalent to those contained in the Directive or 
in this Agreement, with the exception of Article 15, and providing for the same dates 
of implementation. 

The Contracting Parties shall decide, by common accord, at least six months before 
the date referred to in Article 17 (2), whether the condition set out in paragraph 1 will 
be met having regard to the dates of entry into force of the relevant measures in the 
third countries and dependent or associated territories concerned. If the Contracting 
Parties do not decide that the condition will be met, they shall, by common accord, 
adopt a new date for the purposes of Article 17 (2). 

3. 

Notwithstanding paragraphs 1 and 2, Article 15 shall apply in respect of Spain with 
effect  from  the  entry  into  force  of  a  bilateral  agreement  between  Spain  and 

17 

 
 
  
 
Switzerland on the exchange of information on request in criminal or civil cases of 
tax  fraud,  as  defined  in  the  laws  of  the  requested  State,  or  the  like,  with  respect  to 
items  of  income  not  subject  to  this  Agreement  but  covered  by  a  convention  or  an 
agreement between Spain and Switzerland on the elimination of double taxation on 
income and capital. 

The  application  of  this  Agreement  or  parts  thereof  may  be  suspended  by  either 
Contracting Party with immediate effect through notification to the other should the 
Directive  or  part  of  the  Directive  cease  to  be  applicable  either  temporarily  or 
permanently  in  accordance  with  European  Community  law  or  in  the  event  that  a 
Member State should suspend the application of its implementing legislation. 

Either  Contracting  Party  may  suspend  the  application  of  this  Agreement  through 
notification  to  the  other  in  the  event  that  one  of  the  third  countries  or  territories 
referred to in paragraph 1 should subsequently cease to apply the measures referred 
to  in  that  paragraph.  Suspension  of  application  shall  take  place  no  earlier  than  two 
months after notification. Application of the Agreement shall resume as soon as the 
measures are reinstated. 

Article 19 

Claims and Final Settlement 

Should this Agreement be terminated or its application be suspended either in full or 
in  part,  the  claims  of  individuals  in  accordance  with  Article  9  shall  remain 
unaffected. 

Switzerland  will,  in  such  case,  establish  a  final  account  by  the  end  of  the 
applicability of the Agreement and make a final payment to the Member States.  

4. 

5. 

1. 

2. 

Article 20 

Territorial Scope 

This  Agreement  applies  to  Switzerland  and  to  the  territory  to  which  the  Treaty  establishing 
the European Communities applies. 

Article 21 

Annexes 

The Annexes form part of this Agreement. They may be amended by mutual agreement. 

Signed  at  ........................  on  ........................  in  duplicate  in  the  Danish,  Dutch,  English, 
Finnish, French, German, Greek, Italian, Portuguese, Spanish and Swedish languages, each of 
these languages being equally authentic. 

18 

 
 
  
 
Annex 1 

List of competent authorities 

The following are "competent authorities" for the purposes of this Agreement: 

a) 

b) 

c) 

d) 

e) 

f) 

g) 

h) 

i) 

j) 

k) 

l) 

m) 

n) 

in  Switzerland,  Le  Directeur  de  l'Administration  fédérale  des  contributions/Der 
Direktor  der  Eidgenössischen  Steuerverwaltung/il  direttore  dell'Amministrazione 
federale delle contribuzioni or his proxy or agent, 

in the Kingdom of Belgium: De Minister van Financiën/Le Ministre des Finances or 
an authorised representative  

in the Kingdom of Denmark: Skatteministeren or an authorised representative, 

in  the  Federal  Republic  of  Germany:  Der  Bundesminister  der  Finanzen  or  an 
authorised representative, 

in  the  Hellenic  Republic:  Ο  Υπουργός  των  Οικονοµικών  or  an  authorised 
representative, 

in the Kingdom of Spain: El Ministro de Hacienda or an authorised representative, 

in  the  French  Republic:  Le  Ministre  chargé  du  budget  or  an  authorised 
representative, 

in Ireland: The Revenue Commissioners or their authorised representative, 

in  the  Italian  Republic:  Il  Capo  del  Dipartimento  per  le  Politiche  Fiscali  or  an 
authorised representative, 

in  the  Grand  Duchy  of  Luxembourg:  Le  Ministre  des  Finances  or  an  authorised 
representative; however for the purposes of article 10 the competent authority shall 
be le Procureur Général d'Etat luxembourgeois, 

in  the  Kingdom  of  the  Netherlands:  De  Minister  van  Financiën  or  an  authorised 
representative, 

in  the  Republic  of  Austria:  Der  Bundesminister  für  Finanzen  or  an  authorised 
representative, 

in the Portuguese Republic: O Ministro das Finanças or an authorised representative, 

in the Republic of Finland: Valtiovarainministeriö/Finansministeriet or an authorised 
representative, 

o) 

in the Kingdom of Sweden: Finansdepartementet or an authorised representative,  

19 

 
 
  
 
p) 

in  the  United  Kingdom  of  Great  Britain  and  Northern  Ireland  and  in  the  European 
territories  for  whose  external  relations  the  United  Kingdom  is  responsible:  the 
Commissioners  of  Inland  Revenue  or  their  authorised  representative  and  the 
competent  authority  in  Gibraltar,  which  the  United  Kingdom  will  designate  in 
accordance  with  the  Agreed  Arrangements  relating  to  Gibraltar  authorities  in  the 
context of EU and EC instruments and related treaties notified to the Member States 
and institutions of  the  European Union of  19  April  2000,  a  copy  of  which  shall  be 
notified  to  Switzerland  by  the  Secretary  General  of  the  Council  of  the  European 
Union, and which shall apply to this Agreement. 

20 

 
 
  
 
Annex 2 

List of related entities 

For the purposes of Article 16 of this Agreement, the following entities will be considered to 
be  a  "related  entity  acting  as  a  public  authority  or  whose  role  is  recognised  by  an 
international treaty":  

ENTITIES WITHIN THE EUROPEAN UNION: 

Belgium 

– 

– 

– 

– 

– 

– 

Spain 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Vlaams Gewest (Flemish Region) 

Région wallonne (Walloon Region) 

Région bruxelloise/Brussels Gewest (Brussels Region) 

Communauté française (French Community) 

Vlaamse Gemeenschap (Flemish Community) 

Deutschsprachige Gemeinschaft (German-speaking Community) 

Xunta de Galicia (Regional Executive of Galicia) 

Junta de Andalucía (Regional Executive of Andalusia) 

Junta de Extremadura (Regional Executive of Extremadura) 

Junta de Castilla- La Mancha (Regional Executive of Castilla- La Mancha) 

Junta de Castilla- León (Regional Executive of Castilla- León) 

Gobierno Foral de Navarra (Regional Government of Navarre) 

Govern de les Illes Balears (Government of the Balearic Islands) 

Generalitat de Catalunya (Autonomous Government of Catalonia) 

Generalitat de Valencia (Autonomous Government of Valencia) 

Diputación General de Aragón (Regional Council of Aragon) 

Gobierno de las Islas Canarias (Government of the Canary Islands) 

Gobierno de Murcia (Government of Murcia) 

Gobierno de Madrid (Government of Madrid) 

21 

 
 
  
 
 
 
– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Gobierno  de  la  Comunidad  Autónoma  del  País  Vasco/Euzkadi  (Government  of  the 
Autonomous Community of the Basque Country) 

Diputación Foral de Guipúzcoa (Regional Council of Guipúzcoa) 

Diputación Foral de Vizcaya/Bizkaia (Regional Council of Vizcaya) 

Diputación Foral de Alava (Regional Council of Alava) 

Ayuntamiento de Madrid (City Council of Madrid) 

Ayuntamiento de Barcelona (City Council of Barcelona) 

Cabildo Insular de Gran Canaria (Island Council of Gran Canaria) 

Cabildo Insular de Tenerife (Island Council of Tenerife) 

Instituto de Crédito Oficial (Public Credit Institution) 

Instituto Catalán de Finanzas (Finance Institution of Catalonia) 

Instituto Valenciano de Finanzas (Finance Institution of Valencia) 

Greece   

– 

– 

– 

Оργανισµός 
Organisation) 

Тηλεπικοινωνιών 

Ελλάδος 

(National 

Telecommunications 

Оργανισµός Σιδηροδρόµων Ελλάδος (National Railways Organisation) 

∆ηµόσια Επιχείρηση Ηλεκτρισµού (Public Electricity Company) 

France   

– 

– 

– 

– 

– 

– 

– 

La  Caisse  d'amortissement  de  la  dette  sociale  (CADES)  (Social  Debt  Redemption 
Fund) 

L'Agence française de développement (AFD) (French Development Agency) 

Réseau Ferré de France (RFF)(French Rail Network) 

Caisse Nationale des Autoroutes (CNA) (National Motorways Fund) 

Assistance publique Hôpitaux de Paris (APHP) (Paris Hospitals Public Assistance) 

Charbonnages de France (CDF) (French Coal Board) 

Entreprise minière et chimique (EMC)(Mining and Chemicals Company) 

Italy 

– 

– 

Regions 

Provinces 

22 

 
 
  
 
 
– 

– 

Municipalities 

Cassa Depositi e Prestiti (Deposits and Loans Fund) 

Portugal 

– 

– 

– 

Região Autónoma da Madeira (Autonomous Region of Madeira) 

Região Autónoma dos Açores (Autonomous Region of Azores) 

Municipalities 

INTERNATIONAL ENTITIES: 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

European Bank for Reconstruction and Development 

European Investment Bank 

Asian Development Bank 

African Development Bank 

World Bank / IBRD / IMF 

International Finance Corporation 

Inter-American Development Bank 

Council of Europe Social Development Fund 

EURATOM 

European Community 

Corporación Andina de Fomento (CAF) (Andean Development Corporation) 

Eurofima 

European Coal & Steel Community 

Nordic Investment Bank 

Caribbean Development Bank 

The provisions of Article 16 are without prejudice to any international obligations that the 
Contracting Parties may have entered into with respect to the above mentioned international 
entities. 

23 

 
 
  
 
 
ENTITIES IN THIRD COUNTRIES : 

The entities that meet the following criteria : 

1. 

2. 

3. 

4. 

The entity is clearly considered to be a public entity according to the national criteria. 

Such public entity is a non-market producer which administers and finances a group 
of  activities,  principally  providing  non-market  goods  and  services,  intended  for  the 
benefit  of  the  community  and  which  are  effectively  controlled  by  general 
government.  

Such public entity is a large and regular issuer of debt.  

The  State  concerned  is  able  to  guarantee  that  such  public  entity  will  not  exercise 
early redemption in the event of gross-up clauses.  

24 

 
 
  
 
Memorandum of Understanding 

between 

the European Community , the Kingdom of Belgium, the Kingdom of Denmark, the Federal 
Republic of Germany, the Hellenic Republic, the Kingdom of Spain, the French Republic, 
Ireland, the Italian Republic, the Grand Duchy of Luxembourg, the Kingdom of the 
Netherlands, the Republic of Austria, the Portuguese Republic, the Republic of Finland, the 
Kingdom of Sweden, the United Kingdom of Great Britain and Northern Ireland, 

and 

the Swiss Confederation 

25 

 
 
  
 
the European Community, the Kingdom of Belgium, the Kingdom of Denmark, the Federal 
Republic of Germany, the Hellenic Republic, the Kingdom of Spain, the French Republic, 
Ireland, the Italian Republic, the Grand Duchy of Luxembourg, the Kingdom of the 
Netherlands, the Republic of Austria, the Portuguese Republic, the Republic of Finland, the 
Kingdom of Sweden, the United Kingdom of Great Britain and Northern Ireland, 

and 

the Swiss Confederation, hereinafter referred to as Switzerland, 

have agreed the following Memorandum of Understanding 

1. 

INTRODUCTION 

Switzerland  and  the  European  Community  are  entering  into  an  Agreement  providing  for 
measures equivalent to those laid down in Council Directive 2003/48/EC of 3 June 2003 on 
the  taxation  of  savings  income  in  the  form  of  interest  payments  (hereinafter  the  Directive). 
This Memorandum of Understanding complements that Agreement. 

2. 

ADMINISTRATIVE ASSISTANCE IN CASES OF TAX FRAUD OR THE LIKE  

As  soon  as  the  Agreement  is  signed,  Switzerland  and  each  Member  State  of  the  European 
Union will enter into bilateral negotiations with a view to: 

– 

– 

3. 

including  in  their  respective  double  taxation  conventions  on  income  and  capital 
provisions  on  administrative  assistance  in  the  form  of  exchange  of  information  on 
request  for  all  criminal  or  civil  cases  of  tax  fraud  under  the  laws  of  the  requested 
State,  or  the  like  with respect to items of income not subject to the Agreement but 
covered by their respective conventions.  

defining individual categories of cases falling under "the like" in accordance with the 
procedure of taxation applied by those countries.  

NEGOTIATIONS  FOR  SECURING  EQUIVALENT  MEASURES  WITH  OTHER  THIRD 
COUNTRIES. 

During  the  transitional  period  provided  for  in  the  Directive,  the  European  Community  shall 
enter  into  discussions  with  other  important  financial  centres  with  a  view  to  promoting  the 
adoption  by  those  jurisdictions  of  measures  equivalent  to  those  to  be  applied  by  the 
Community. 

4. 

DECLARATION OF INTENT 

The  signatories  of  this  memorandum  of  understanding  declare  that  they  consider  the 
Agreement referred to in point 1 and this memorandum to provide an acceptable and balanced 
arrangement  that  can  be  considered  as  safeguarding  the  interests  of  the  parties.  They  will 
therefore  implement  the  agreed  measures  in  good  faith  and  will  not  act  unilaterally  to 
undermine this arrangement without due cause.  

26 

 
 
  
 
If any significant difference between the coverage of the Directive as adopted on 3 June 2003 
and that of the Agreement should be discovered, in particular with regard to Article 1 (2) and 
Article 6 of the Agreement, the Contracting Parties will immediately enter into consultations 
in accordance with Article 13 (1) of the Agreement with a view to ensuring that the equivalent 
nature of the measures provided for in the Agreement is maintained. 

Signed  at  ........................  on  ........................  in  duplicate  in  the  Danish,  Dutch,  English, 
Finnish, French, German, Greek, Italian, Portuguese, Spanish and Swedish languages, each of 
these languages being equally authentic. 

27