Common use of Taxation in Italy Clause in Contracts

Taxation in Italy. The information set out below is a summary, pursuant to Italian tax legislation and market practice, of the tax regime for the purchase, holding, sale and exercise of Certificates on the part of individual investors resident in Italy, not engaged in entrepreneurial activity. The following is not intended to be a complete analysis of all tax consequences of the purchase, holding, sale and exercise of Certificates. The following is based on the tax legislation in force as of the date of this Base Prospectus, it being understood that such legislation is subject to possible changes which could have retrospective effects, and represents only an introduction to the subject. Investors are advised to obtain professional advice with regard to the tax regime for the purchase, holding, sale and exercise of the Certificates. Under the joint provisions of article 67 of the Consolidated Act on Income Taxes (Testo Unico delle Imposte sui Redditi) passed by Decree of the President of the Republic of 22 December 1986, no. 917, as modified by Legislative Decree of 12 December 2003, no. 344, Legislative Decree of 18 November 2005, no. 247, and article 5 of Legislative Decree of 21 November 1997, n. 461, and further amendments thereof, proceeds and capital gains, not obtained within the exercise of entrepreneurial activities, realized by persons resident in Italy and individuals equivalent to residents as defined in the Decree no. 461/1997, as amended, arising out of both the exercise and the sale for money consideration of Certificates are subject to substitutive tax of 12.5 per cent. Charges and capital losses arising out of the exercise and sale of Certificates are deductible in accordance with the modalities indicated below; premiums paid on Certificates contribute to create the income of the financial year in which the Certificates are exercised or alienated. The tax-payer may opt among three different alternative taxation regimes: the taxation based on the annual tax return, which constitutes the so called "base regime" applicable unless the exercise of an option by the tax payer; the "risparmio amministrato" regime and the "risparmio gestito" regime:

Taxation in Italy. The information set out below is a summary, pursuant to Italian tax legislation and market practice, of the tax regime for the purchase, holding, sale and exercise of the Certificates on the part of individual investors resident in Italy, not engaged in entrepreneurial activity. The following is not intended to be a complete analysis of all tax consequences of the purchase, holding, sale and exercise of the Certificates. The following is based on the tax legislation in force as of the date of this Base Prospectus, it being understood that such legislation is subject to possible changes which could have retrospective effects, and represents only an introduction to the subject. Investors are advised to obtain professional advice with regard to the tax regime for the purchase, holding, sale and exercise of the Certificates. Under the joint provisions of article 67 of the Consolidated Act on Income Taxes (Testo Unico delle Imposte sui Redditi) passed by Decree of the President of the Republic of 22 December 1986, no. 917, as modified by Legislative Decree of 12 December 2003, no. 344, Legislative Decree of 18 November 2005, no. 247, and article 5 of Legislative Decree of 21 November 1997, n. 461, and further amendments thereof, proceeds and capital gains, not obtained within the exercise of entrepreneurial activities, realized by persons resident in Italy and individuals equivalent to residents as defined in the Decree no. 461/1997, as amended, arising out of both the exercise and the sale for money consideration of the Certificates are subject to substitutive tax of 12.5 per cent. Charges and capital losses arising out of the exercise and sale of the Certificates are deductible in accordance with the modalities indicated below; premiums paid on the Certificates contribute to create the income of the financial year in which the Certificates are exercised or alienated. The tax-payer may opt among three different alternative taxation regimes: the taxation based on the annual tax return, which constitutes the so called "base regime" applicable unless the exercise of an option by the tax payer; the "risparmio amministrato" regime and the "risparmio gestito" regime:

Taxation in Italy. The information set out below is a summary, pursuant to Italian tax legislation and market practice, of the tax regime for the purchase, holding, sale and exercise of Certificates on the part of individual investors resident in Italy, not engaged in entrepreneurial activity. The following is not intended to be a complete analysis of all tax consequences of the purchase, holding, sale and exercise of Certificates. The following is based on the tax legislation in force as of the date of this Base Prospectus, it being understood that such legislation is subject to possible changes which could have retrospective effects, and represents only an introduction to the subject. Investors are advised to obtain professional advice with regard to the tax regime for the purchase, holding, sale and exercise of the Certificates. Under the joint provisions of article 67 of the Consolidated Act on Income Taxes (Testo Unico delle Imposte sui Redditi) passed by Decree of the President of the Republic of 22 December 1986, no. 917, as modified by Legislative Decree of 12 December 2003, no. 344, Legislative Decree of 18 November 2005, no. 247, and article 5 of Legislative Decree of 21 November 1997, n. 461, and further amendments thereof, proceeds and capital gains, not obtained within the exercise of entrepreneurial activities, realized by persons resident in Italy and individuals equivalent to residents as defined in the Decree no. 461/1997, as amended, arising out of both the exercise and the sale for money consideration of Certificates are subject to substitutive tax of 12.5 per cent. Charges and capital losses arising out of the exercise and sale of Certificates are deductible in accordance with the modalities indicated below; premiums paid on Certificates contribute to create the income of the financial year in which the Certificates are exercised or alienated. The tax-payer may opt among three different alternative taxation regimes: the taxation based on the annual tax return, which constitutes the so called "base regime" applicable unless the exercise of an option by the tax payer; the "risparmio amministrato" regime and the "risparmio gestito" regime:

Taxation in Italy. The information set out below is a summary, pursuant to Italian tax legislation and market practice, of the tax regime for the purchase, holding, sale and exercise of the Certificates on the part of individual investors resident in Italy, not engaged in entrepreneurial activity. The following is not intended to be a complete analysis of all tax consequences of the purchase, holding, sale and exercise of Certificates. The following is based on the tax legislation in force as of the date of this Base Prospectus, it being understood that such legislation is subject to possible changes which could have retrospective effects, and represents only an introduction to the subject. Investors are advised to obtain professional advice with regard to the tax regime for the purchase, holding, sale and exercise of the Certificates. Italian tax law does not provide rules pertaining to any specific financial derivative instrument, but rather deals with them on a general basis; income arising under these instruments is generally treated as “other income” (“Redditi Diversi”), i.e., income which depends upon uncertain events, as opposed to “income from the investment in capital” (“Redditi di Capitale”) which includes only income that arises from the temporary availability of capital. Under the joint provisions of article 67 67(c-quater) of the Consolidated Act on Income Taxes (Testo Unico delle Imposte sui Redditi) passed by Decree of the President of the Republic of 22 December 1986, no. 917, as modified by Legislative Decree of 12 December 2003, no. 344, Legislative Decree of 18 November 2005, no. 247, and article 5 of Legislative Decree of 21 November 1997, n. 461, and further amendments thereof, proceeds and capital gainstaxable income realized under the Certificates, not obtained within the exercise of entrepreneurial activities, realized by persons resident in Italy and individuals equivalent to residents as defined in the Decree no. 461/1997, as amended, arising out of both is determined as follows: - in the exercise and the sale for money consideration case of Certificates which are physically settled, taxable income realized upon disposal of the physical settlement must be determined under the rules for determining capital gains; and - in the case of Certificates which are cash settled, taxable income is equal to the algebraic sum of the positive and negative settlements, taking into account all the relevant proceeds and charges. Pursuant to the Decree 461/1997, taxable income arising from the Certificates is ordinarily subject to Italian substitutive tax of 12.5 at a 12.50 per cent. Charges and capital losses arising out of the exercise and sale of Certificates are deductible in accordance with the modalities indicated below; premiums paid on Certificates contribute to create the income of the financial year in which the Certificates are exercised or alienatedcent rate. The tax-payer may opt among three different alternative taxation regimes: the taxation based on the annual tax return, which constitutes the so called "base regime" applicable unless the exercise of an option by the tax payer; the "risparmio amministrato" regime and the "risparmio gestito" regime: