SUMMARY

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

LIMITED TREATY BENEFITS

More than 30% of the aggregate vote and value of all shares is ultimately owned by qualified persons resident in CH

More than 70% of the aggregate vote and value of all shares is ultimately owned by qualified persons and persons which are resident of an EU, EEA or NAFTA member State

With regards to shares ultimately owned by residents of an EU,EEA or NAFTA member State, there is a tax treaty between the State of residence of the recipient and USA

The recipient of the income is entitled to all benefits of the previously mentioned treaty

The recipient of the income would qualify for total treaty benefits under the LOB provision in the CH-USA tax treaty if it were applicable

The tax at source under the treaty between the State of residence of the recipient and USA is at least as low under the CH-USA tax treaty

In the preceding fiscal period, less than 50% of the company's gross income was used to make deductible payments to persons which are not qualified persons

TRIANGULAR CASES

The Swiss enterprise 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 enterprise and were not attributable to the permanent establishment in the third jurisdiction

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

The income does not consist in income (other than royalty income) derived in connection with, or incidental to the active conduct of trade or business carried on by the permanent establishment in the third jurisdiction

Under these circumstances partial treaty protection is granted (maximum tax at source on dividends, interest and royalties : 15%)