Note1:Dividends paid to nonresident companies are subject to a 35% withholding tax unless a lower rate applies under an applicable tax treaty. Additionally, under the Swiss-EU savings agreement, measures equivalent to the EU parent-subsidiary directive apply, so that dividends paid to qualifying EU parent companies will be exempt from withholding tax.

Note2:In principle, interest paid to nonresident companies is not subject to Swiss withholding tax. Under Swiss domestic law, only interest derived from deposits with Swiss banks, bonds and bond-like loans is subject to withholding tax. Interest paid on mortgages secured by Swiss real estate is subject to withholding tax in most cantons. Under Switzerland’s agreement with the EU, withholding tax is not imposed on certain cross-border payments of interest between related companies residing in EU member states and Switzerland (subject to transitional provisions).

Note3: Switzerland does not levy withholding tax on royalty payments.