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

RESIDENT PERSON

The person receiving the income is a Swiss resident company

PREDOMINANT INTEREST TEST

The ultimate beneficial owners are not qualified persons in the aggregate of a predominant interest in the form of participation or otherwise

STOCK EXCHANGE TEST

The principal class of shares is not listed or is not regularly and primarly traded on one or more recognized stock exchanges

The ultimate beneficial owners of a predominant interest in the company are not one or more companies which meet the direct stock exchange test

95% SHAREHOLDER TEST

Less than 95% of all the shares (of the aggregate vote and value) are ultimately owned by seven or fewers persons that are qualified persons of a member state of the EU or of the EEA or a party to the NAFTA

ACTIVE TRADE OR BUSINESS TEST

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 not substantial in relation to the income producing activity

HEADQUARTER TEST

The person receiving the income is a Swiss resident company and it is a recognized headquarters company for a multinational corporate group

The headquarters company carries out a substantial part of the overall supervision and administration of a multinational group of companies and these activities are carried out in Switzerland

The group consists of corporations which are residents of and are actively engaged in business activities carried on in at least five countries or five groups of countries

Less than 10% of the group's gross income is derived from each of the five countries or five groups of countries; or more than 50% of the group's gross income is derived from any one country other than Switzerland; or more than 25% of the group's gross income is derived from USA

The required ratios regarding the gross income are met when averaging the gross income of the preceding four years (i.e. less than 10% of the group's gross income is derived from each of the five countries or five groups of countries; or more than 50% of the group's gross income is derived from any one country other than Switzerland; or more than 25% of the group's gross income is derived from USA)

The headquarters company has independent discretionary authority to carry out the headquarters functions (i.e. overall supervision and administration of a multinational group of companies) and the headquarters company exercises this authority

The headquarters company is subject to generally applicable rules of taxation in Switzerland

The income derived from USA is derived in connection with the group's business activities or it is incidental to the group's business activities

TRIANGULAR CASES

The Swiss resident company does not derive income from USA which is attributable to a permanent establishment in a third jurisdiction

Under these circumstances treaty protection is granted