1. In the case of the Republic of Moldova, double taxation shall be avoided as  follows: 

a) Where a resident of the Republic of Moldova derives income or owns  capital, which in accordance with the provisions of this Agreement, may be taxed in  Switzerland, the Republic of Moldova shall allow: 

(i) as a deduction from the tax on the income of that resident, an amount  equal to the income tax paid in Switzerland; 

(ii) as a deduction from the tax on the capital of that resident, an amount  equal to the capital tax paid in Switzerland.

Such deduction in either case shall not, however, exceed that part of the  income tax or capital tax, as computed before the deduction is given, which is  attributable, as the case may be, to the income or the capital which may be taxed in  Switzerland. 

b) Where in accordance with any provisions of this Agreement income  derived or capital owned by a resident of the Republic of Moldova is exempt from  tax in that State, the Republic of Moldova may nevertheless, in calculating the  amount of tax on the remaining income or capital of such resident, take into account  the exempted income or capital. 

2. In the case of Switzerland, double taxation shall be avoided as follows: 

a) Where a resident of Switzerland derives income or owns capital which, in  accordance with the provisions of this Agreement, may be taxed in the Republic of  Moldova, Switzerland shall, subject to the provisions of subparagraph b), exempt  such income or capital from tax but may, in calculating tax on the remaining income  or capital of that resident, apply the rate of tax which would have been applicable if  the exempted income or capital had not been so exempted. 

b) Where a resident of Switzerland derives dividends or interest which, in  accordance with the provisions of Article 10 or 11, may be taxed in the Republic of  Moldova, Switzerland shall allow, upon request, a relief to such resident. The relief  may consist of:

(i) a deduction from the tax on the income of that resident of an amount  equal to the tax levied in the Republic of Moldova in accordance with the provisions  of Articles 10 and 11; such deduction shall not, however, exceed that part of the  Swiss tax, as computed before the deduction is given, which is appropriate to the  income which may be taxed in the Republic of Moldova; or 

(ii) a lump sum reduction of the Swiss tax; or 

(iii) a partial exemption of such dividends or interest from Swiss tax, in  any case consisting at least of the deduction of the tax levied in the Republic of  Moldova from the gross amount of the dividends or interest. 

Switzerland shall determine the applicable relief and regulate the procedure in  accordance with the Swiss provisions relating to the carrying out of international  conventions of the Swiss Confederation for the avoidance of double taxation. 

c) A company which is a resident of Switzerland and which derives  dividends from a company which is a resident of the Republic of Moldova shall be  entitled, for the purposes of Swiss tax with respect to such dividends, to the same  relief which would be granted to the company if the company paying the dividends  were a resident of Switzerland.