INVESTKREDIT BANK AG - Xetra

Accrued interest for the time of ownership is also subject to this advanced interest income tax and
solidarity-surcharge tax.
The tax withheld from tax residents will be credited as a prepayment for purposes of the tax
assessment and will be repaid in case of overpayment. Persons who are not tax residents and have
held Notes in their own custody will receive a refund of the tax deducted pursuant to existing double
taxation treaties (if applicable).
The above summary is not exhaustive. It does not take into account the possible taxation of
speculative capital gains or other special considerations that may apply in a particular situation.
Investors and other interested parties are required to obtain individual tax advice in connection with
the acquisition and holding, as well as the sale or repayment of Notes.
Proposed EU Directive on the Taxation of Savings Income
On 21 January 2003 the Council of the European Union approved an amended proposal for a
directive on taxation of savings income, which modifies the prior savings directive proposal dated
13 December 2001 in some areas but is generally consistent with it. Following the agreement, all
EU Member States, with the exception of Austria, Luxembourg and Belgium, will automatically
exchange information about cross border EU interest payments originating in their territories which
are paid to individuals after the Directive comes into effect (probably 1 January 2004).
The position of Austria, Luxembourg and Belgium is that they will be allowed to levy a withholding
tax on such payments in lieu of exchanging information. The rate of withholding tax is 15% initially,
rising to 20% in 2007 and 35% in 2010. 75% of the proceeds derived from such tax withholding on
interest will be passed on by Austria, Belgium and Luxembourg to the residence countries of these
individuals. The agreement reached on 21 January 2003 does not necessarily commit Austria,
Luxembourg and Belgium to move to an automatic exchange of information system after 2010, but
makes this move dependent on the EU reaching unanimous agreement on satisfactory information
exchange arrangements with the US, Switzerland and other territories.
Holders who are individuals should note that, if this proposal is adopted, the Issuer will not
pay any additional amounts under § 5 of the Terms and Conditions of the Notes in respect of
any withholding tax imposed as a result thereof.
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