The Association, its assets, income and other property are exempt from direct federal, cantonal and communal taxes for its services in Switzerland. However, for real property, this exemption applies only to those owned and occupied by the Association, as well as to the revenues derived from it.

The Association may not be liable to a tax on the rent it pays for premises rented by it and occupied by its services.

The Association is exempt from federal, cantonal and communal indirect taxes. With respect to the federal tax on turnover, included in prices or transferred in an apparent manner, however, the exemption is only permitted for acquisitions for the official use of the Association, provided that the amount Invoiced for one acquisition alone exceeds 100 Swiss francs.

The Association is exempt from all federal, cantonal and communal taxes with the exception of those collected for specific services rendered.

Where applicable, the above exemptions shall be effected by way of reimbursement, at the request of the Association and following a procedure to be determined by the Organization and the competent Swiss authorities.

(1) Members of the staff of the Association who are not Swiss nationals shall be exempt, for the duration of their duties, from all federal, cantonal and communal taxes on salaries, emoluments and allowances paid to them by The Association.

2. Also exempt in Switzerland from any taxes on capital and income, at the time of payment, the capital benefits payable under any circumstances by a pension fund or an institution of foresight The same will apply to all benefits that could be paid as a result of sickness, accident, disability, etc. On the other hand, the income from the capital paid and the annuities and pensions paid by the Association to former members of its staff do not benefit from the exemption. Moreover, it remains understood that Switzerland retains the option of taking into account the treatment and other exempt income elements in determining the tax rate applicable to other, normally taxable items, of the income of the members of the Staff.

Art. 5 ^{Bis 1}

1. Members of the staff of the Association who do not have Swiss nationality and who benefit from the tax exemptions provided for in Art. 5 of this Agreement shall not be subject to the Swiss legislation on old-age and survivors'insurance, invalidity insurance, unemployment insurance, the scheme of allowances for loss of gain and occupational pensions, survivors' and survivors'pensions, survivors' and Disability required.

2. The members of the staff of the Association who are of Swiss nationality shall be subject to the legislation referred to in paragraph 1. The Association shall comply with the obligations imposed on employers by the said legislation.

3. The Association shall ensure that members of its staff who are not subject to the legislation referred to in paragraph 1 enjoy equivalent social protection.

The tax provisions of this Agreement shall not be established for the purpose of providing staff members of the Association with Personal Benefits and conveniences. They shall be established solely in the interest of the Association's proper functioning.

The Association shall cooperate with the Swiss authorities at all times with a view to preventing any abuse of the facilities provided for in that agreement.

Any difference of opinion concerning the application or interpretation of this Agreement, which could not be settled by direct talks between the parties, may be submitted by either party to the assessment of a arbitral tribunal Composed of three members.

The Federal Council and the Association each appoint a member of the court. The designated members shall select their chairperson. In case of disagreement between the members concerning the person of the President, the President shall be appointed by the President of the Swiss Federal Court.

1. This Agreement may be revised at the request of either Party.

2. In this event, both parties shall consult on any amendments that may be made to the provisions of this Agreement.

This Agreement may be terminated at any time by either party, subject to two years' notice.

This Agreement shall enter into force on 1 ^Er January 1977.

Done and signed in Bern on 20 December 1976, in duplicate.