According to the information provided the test may be summarized as follows :

The information included in the present tool is intended as general guidance and is not represented to be comprehensive or advisory in nature. Please contact your professional tax adviser for detailed information regarding the topic contained herein


The person receiving the income is a Swiss resident partnership


The person is engaged in the active conduct of a trade or business in CH

The income derived by this person from USA is derived in connection with the business activities carried on in CH

The income is derived from a related party

The trade or business of the income recipient is substantial in relation to the income producing activity


The Swiss resident partnership derives income from USA which is attributable to a permanent establishment in a third jurisdiction

The total tax liability in CH and the third jurisdiction is less than 60% of the tax liability that would have been payable in CH, if the income was earned in CH by the partnership and were not attributable to the permanent establishment in the third jurisdiction

The income is not royalty income received as compensation for the use of, or the right to use, intangible property produced or developed by the permanent establishment itself

The income consists in income (other than royalty income) derived in connection with, or incidental to the active conduct of a trade or business carried on by the permanent establishment in the third jurisdiction

Under these circumstances treaty protection is granted