CHAPTER IIGENERAL PROVISIONS

Article 5Transactions not subject to indirect tax

1.Member States shall not subject capital companies to any form of indirect tax whatsoever in respect of the following:

(a)contributions of capital;

(b)loans, or the provision of services, occurring as part of contributions of capital;

(c)registration or any other formality required before the commencement of business to which a capital company may be subject by reason of its legal form;

(d)alteration of the constituent instrument or regulations of a capital company, and in particular the following:

(i)

the conversion of a capital company into a different type of capital company;

(ii)

the transfer from a Member State to another Member State of the centre of effective management or of the registered office of a capital company;

(iii)

a change in the objects of a capital company;

(iv)

the extension of the period of existence of a capital company;

(e)the restructuring operations referred to in Article 4.

2.Member States shall not subject the following to any form of indirect tax whatsoever:

(a)the creation, issue, admission to quotation on a stock exchange, making available on the market or dealing in stocks, shares or other securities of the same type, or of the certificates representing such securities, by whomsoever issued;

(b)loans, including government bonds, raised by the issue of debentures or other negotiable securities, by whomsoever issued, or any formalities relating thereto, or the creation, issue, admission to quotation on a stock exchange, making available on the market or dealing in such debentures or other negotiable securities.