Under the Euro Medium Term Note Programme ... - Finance - EDF

Taxation
For these purposes, the term "paying agent" is defined widely and includes in
particular any economic operator who is responsible for making interest payments,
within the meaning of the Directive, for the immediate benefit of individuals.
However, throughout a transitional period, certain Member States (the Grand-Duchy
of Luxembourg and Austria), instead of using the Disclosure of Information Method
used by other Member States, unless the relevant beneficial owner of such payment
elects for the Disclosure of Information Method, withhold an amount on interest
payments. The rate of such withholding tax is 35 per cent.
Such transitional period will end at the end of the first full fiscal year following the
later of (i) the date of entry into force of an agreement between the European
Community, following a unanimous decision of the European Council, and the last of
Switzerland, Liechtenstein, San Marino, Monaco and Andorra, providing for the
exchange of information upon request as defined in the OECD Model Agreement on
Exchange of Information on Tax Matters released on 18 April 2002 (the "OECD
Model Agreement") with respect to interest payments within the meaning of the
Directive, in addition to the simultaneous application by those same countries of a
withholding tax on such payments at the rate applicable for the corresponding
periods mentioned above and (ii) the date on which the European Council
unanimously agrees that the United States of America is committed to exchange of
information upon request as defined in the OECD Model Agreement with respect to
interest payments within the meaning of the Directive.
A number of non-EU countries and dependent or associated territories have agreed
to adopt similar measures (transitional withholding or exchange of information) with
effect since 1 July 2005.
The European Commission has proposed a number of changes to the Directive
which have been adopted by the European Parliament. The European Parliament
adopted an amended version of this proposal on 24 April 2009. If any of these
proposed changes are made in relation to the Directive, they may amend or broaden
the scope of the requirements described above. Investors who are in doubt as to
their position should consult their professional advisors.
2.2 France — Taxation
Following the introduction of the French Loi de finances rectificative pour 2009 No.3
(n° 2009-1674 dated 30 December 2009) (the “Law”), payments of interest and other
revenues made by the Issuer with respect to Notes issued as from 1 March 2010
(other than Notes which are assimilated (assimilables for the purpose of French law)
and form a single series with Notes issued prior to 1 March 2010 having the benefit
of Article 131 quater of the French General Tax Code) will not be subject to the
withholding tax set out under Article 125 A III of the French General Tax Code unless
such payments are made outside France in a non-cooperative State or territory (Etat
ou territoire non coopératif) within the meaning of Article 238-0 A of the French
General Tax Code (a “Non-Cooperative State”). If such payments under the Notes
are made in a Non-Cooperative State, a 50 per cent. withholding tax will be
applicable (subject to certain exceptions and potentially to the more favourable
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