Key Benefits:
(State 1 Er October 1998)
The Embassy of Switzerland presents its compliments to the Ministry of Foreign Affairs and has the honour to acknowledge receipt of its note of 15 May 1965 of the following content:
Original text
" Art. 10 of the French-Swiss Convention of 4 July 1949 1 Relating to the construction and operation of the Basel-Mulhouse Airport provides that the various materials and materials intended for the works and installations will be exempt from all import duties and taxes.
At meetings held in Basel on 9, 10 and 11 April 1959, the French delegation agreed, at the request of the Swiss delegation, to consider exempting the value added tax on French-origin materials and materials For the said works and installations.
Finally, art. 14, para. 1 of the Book of Charges, annexed to the aforementioned Convention, provides that the conditions for the application of the French taxes and taxes to the charge in particular of the Airport and the undertakings responsible for the performance of immovable works for the Airport will The subject of an agreement between the two Governments.
During the conversations that took place in Paris from 2 to 4 May 1960, it was decided that the agreement thus envisaged would be concluded in the form of an exchange of notes between the Ministry of Foreign Affairs and the Swiss Embassy in Paris.
The Ministry of Foreign Affairs has the honour to inform the Swiss Embassy that the conditions for applying the turnover tax system to the construction and installation operations of the Basel-Mulhouse Airport Can be as follows:
A. Real Estate Contracts
These operations include all real estate by nature or real estate according to the distinctions established by French tax law.
As envisaged in the conversations of 2 to 4 May 1960, the value added tax will be charged only on 15 % of the total amount of the factums of real estate undertakings tax included, reinstatement made, possibly, The value of the materials provided by the Airport.
B. Supply contracts with pose
The supply contracts with equipment will bear the tax on services on the part of the memory corresponding to the pose.
In the interests of simplification, the cost of the installation will be fixed at 5 % of the total amount paid by the Airport to the holders of the markets.
C. Subcontract markets
The French subcontractors of Swiss contractors who have worked contracts could charge their factums in suspension of the value added tax.
D. Service Delivery
The provision of services, which are not included in the forecasts of s. B Above, carried out for the Airport by the French or Swiss companies will bear the taxes on turnover in the conditions of common law. However, the fees payable by the Swiss companies will be paid quarterly for their account by the Airport.
E. Supply contracts
The deliveries made by the French suppliers to Swiss labour market holders will be carried out in suspension of the value added tax. The same will apply to supplies of materials and materials made directly to the Airport.
In Cases A And B Referred to above, the submissions of contractors will be established in suspension of the value added tax.
The value added tax will be paid by the Airport at the beginning of each quarter on the basis of amounts paid to contractors in the previous quarter.
The Airport will establish, in agreement with the local tax authorities, the certificates necessary for the application of the value added tax suspension regime provided for in this letter.
The Department of Finance will provide its services with the necessary instructions for the application of the above provisions.
The Ministry of Foreign Affairs has the honour to inform the Swiss Embassy that the French Government, for its part, agrees with the above provisions. If the Government of Switzerland also approves these provisions, the Swiss Embassy will wish to inform the Ministry of Foreign Affairs by a note to be made with the present note of the agreement provided for in Art. 14 para. 1 of the Book of Charges annexed to the Franco-Swiss Convention of 4 July 1949 2 Relating to the construction and operation of the Basel-Mulhouse Airport."
The Embassy has the honour to inform the Ministry that the Swiss Government has agreed to the above proposals.
She took this opportunity to renew to the Department the assurances of her high regard.
Paris, 15 May 1965.
