COMMERZBANK AKTIENGESELLSCHAFT

tax-free private capital gain or tax-neutral capital loss. If the bond part of Structured Notes is disclosed
in the terms and conditions of the respective Structured Note and if the predominant interest yield
does not derive from a one-time-interest-payment, then the taxation principles relevant for ordinarily
taxable Standard-Notes as set forth above apply.
Standard-Notes and Structured Notes held within a business
Swiss-resident, individual taxpayers who hold Standard-Notes or Structured Notes as part of Swiss
business assets, Swiss-resident corporate taxpayers as well as corporate taxpayers resident abroad
holding Standard-Notes or Structured Notes as part of Swiss business assets are required to
recognise capital gains or losses on the sale of a Standard-Note or Structured Note in their income
statement for the respective tax period and will be taxable on any net taxable earnings for such period.
The same tax treatment also applies to Swiss-resident individuals who, for income tax purposes, are
classified as "professional securities dealers" for reasons of, inter alia, frequent dealing and leveraged
investments in securities.
Swiss federal stamp duty on dealing in securities
Dealings in Standard-Notes and Structured Notes where a Swiss domestic bank or another Swiss
domestic securities dealer (as defined in the Swiss Federal Stamp Duty Act) acts as an intermediary
may be subject to the Swiss federal stamp duty on dealing in securities at a rate of up to 0.3 per cent.
of the purchase price of the Standard-Notes or Structured Notes, unless an exemption applies. Where
both the seller and the purchaser of the Standard-Notes or Structured Notes are non-residents of
Switzerland or of the Principality of Liechtenstein, no Swiss federal stamp duty on dealing in securities
is payable.
European Savings Directive
On June 3, 2003 the Economic and Financial Affairs Council of the European Union (ECOFIN Council)
adopted directive 2003/48/EC on the taxation of savings income in the form of interest payments
("Savings Directive"). In Germany, provisions for implementing the Savings Directive have been
enacted by legislative regulations of the federal government (Zinsinformationsverordnung). Each EU
Member State, with the exception of Austria, Belgium and Luxembourg, has to provide the tax
authorities of another Member State with details of payments of interest or other similar income paid
by a paying agent (as defined in the Savings Directive) within its jurisdiction to an individual resident in
that other Member State. At the same time Austria, Belgium and Luxembourg have established a
withholding tax system for a transitional period. On the basis of the agreement of October 26, 2004
between the EU and Switzerland pursuant to which Switzerland agreed to adopt measures equivalent
to those of the European Savings Directive, Switzerland also introduced a withholding tax on interest
payments and other similar income paid by a paying agent within Switzerland to an individual resident
in an EU member state. The withholding tax is set at a rate of currently 20 %. The rate will increase to
35 % on July 1, 2011. Such individual has, however, the option to authorise the paying agent to
disclose details of the payments to the tax authorities of the relevant Member State in lieu of the
withholding. The beneficial owner of the interest payments may be entitled to a tax credit or refund of
the withholding, if any, provided that certain conditions are met.
Holders who are individuals should note that the Issuer will not pay additional amounts under § 6 of
the Terms and Conditions in respect of any withholding tax imposed as a result thereof.
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