Part II. Treaties and Tax Legislation

Subpart A.—Tax Conventions and Other Related Items

Austria Agreement on Deferred Payments

Announcement 2003–58

Following is a copy of the News Release issued by the Director International (U.S. Competent Authority) on August 27, 2003 (IR–2003–104).

U.S. & Austria Reach Agreement on Taxing Deferred Payments to U.S. Citizens Residing in Austria

WASHINGTON - The U.S. and Austrian Competent Authorities have entered into a competent authority agreement. This agreement provides that the U.S.-Austria Income Tax Treaty signed on October 25, 1956, does not prohibit Austria from taxing deferred payments for services earned by U.S. citizens while working and residing in the United States, when such compensation was paid after these employees became residents of Austria. The agreement also confirms, however, that Austria shall deduct from its tax the amount of U.S. taxes imposed on the deferred payments for services, as required by the treaty. The 1956 income tax treaty is applicable for assessment periods up to and including 1998.

Inquiries concerning this agreement may be directed to Mr. Lynn Bartlett of the IRS at (202) 435–5021.

Swiss Agreement on Treaty Benefits

Announcement 2003–59

The following is a copy of the agreement concluded between the U.S. and Swiss competent authorities on August 20, 2003 and released on August 22, 2003 (IR–2003–103) regarding the Limitation of Benefits Article of the income tax treaty and accompanying Revised Memorandum of Understanding between the United States and the Swiss Confederation.

COMPETENT AUTHORITY AGREEMENT

The Competent Authorities of the United States and the Swiss Confederation enter into the following Agreement (“Agreement”) concerning the ownership requirements under paragraph 3 of Article 22 (Limitation on Benefits) and paragraph 7 (In reference to paragraph 6 of Article 22 (Limitation on Benefits)) of the Revised Memorandum of Understanding (“MOU”) of the Convention Between the United States of America and the Swiss Confederation for the Avoidance of Double Taxation with Respect to Taxes on Income, signed on October 2, 1996 (“Treaty”). The Agreement is entered into under paragraph 3 of Article 25 (Mutual Agreement Procedure).

It is understood that for purposes of this Agreement, “Article” refers to an Article of the Treaty.

Ownership requirements under Article 22(3) and paragraph 7 of the MOU