Österreichische Volksbanken-Aktiengesellschaft ... - Volksbank AG

deemed to be, derived from sources in the Republic of Austria; it being understood
that the Austrian Kapitalertragsteuer (capital-yields tax), as in effect at the time of
the issue of the Notes, is a tax falling under this sub-paragraph (b) and with respect
to which, accordingly, no additional amounts will be payable; or
(c) where such deduction or withholding is imposed on a payment to an individual and
is required to be made pursuant to European Council Directive 2003/48/EC or any
other European Union Directive implementing the conclusions of the ECOFIN
Council meeting of 26-27 November 2000 on the taxation of savings income or
any law implementing or complying with, or introduced in order to conform to,
such Directive; or
(d) are payable by reason of a change in law that becomes effective more than 30 days
after the relevant payment becomes due, or is provided for and notice thereof is
given in accordance with § 11 whichever occurs later; or
(e) by or on behalf of a Noteholder which would have been able to avoid such withholding
or deduction by presenting the Note to a Paying Agent in another Member
State of the European Union.
Any reference in these Conditions to interest and/or principal shall be deemed also to refer
to any additional amounts which may be payable under this § 6.
(2) Without tax gross-up. In the case of Notes for which according to the Final Terms (item
40) no tax gross-up is payable, the following shall apply:
All payments of principal and interest in respect of the Notes will be made free and clear
of, and without withholding or deduction for, any taxes, duties, assessments or governmental
charges of whatever nature imposed, levied, collected, withheld or assessed by the
Republic of Austria or any political subdivision or any authority of or in the Republic of
Austria that has power to tax, unless that withholding or deduction is already or shall in
the future be required by law. In that event, the Issuer will make such deductions or withholding
and pay the amounts deducted or withheld to the competent authority.
The Issuer will not be obliged to pay any additional amounts of principal and/or interest
as a result of such deduction or withholding.
(3) Tax information. Information regarding the tax treatment of the Noteholders is contained
in the Base Prospectus of the EUR 3,000,000,000 Issuance Programme dated 11
June 2007, or, in the discretion of the Issuer, in the Final Terms (item 41). Investors with
a residence in another member state of the European Union than the Republic of Austria
(the place of residence is deemed situated in such country which has issued the passport
or identity card of the person obliged to pay taxes) should be aware that pursuant to the
European Directive on the taxation of savings income, savings income may be subject to
a taxation at the source.
§ 7
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