1. Comparison of tax aspects of financing methods in selected CEE countries Lessee’s perspective www.pwc.com

2. PwC Agenda Comparison Czech Republic Slovakia Poland Hungary Ukraine Definitions Corporate income tax VAT Summary Slide 2 leden 2012

3. PwC Definitions - Financial & Operating Lease CountryFinancial LeaseOperating Lease Czech Republic Lease contract with obligation to purchase leased asset for at leased tax residual value Lease period 6M shorter than depreciation, RE at least 30Y Contracts that do not meet FL conditions SlovakiaLease contract with the obligation to purchase leased asset Sales price is included in the total amount of the agreed leasing instalments Lease term at least 60 % of the tax depreciation period, but at least 3Y (abolished in 2012) Contracts that do not meet FL conditions Poland Contract signed for a definite period Total lease payments equals at least purchase value of leased assets Contract contains a specific clause, under which the lessee is entitled to depreciation during the lease Contract signed for at least 40% of the depreciation period or at least 10 years for depreciable real estate Total lease payments equals at least purchase value of leased assets IF NOT MET = RENTAL Hungary Close-End Financial Lease - obligation to purchase leased asset Open-End Financial Lease - option to purchase leased asset Contracts that do not meet FL conditions UkraineANY of the below should be met to be considered as FL Lease equals to at least 75% of depreciation period and lessee is obliged to acquire asset Total lease payments equals at least purchase value of leased assets Residual value at transfer does not exceed 25% of purchase price The property has been manufactured to the order of the lessee and cannot be used by other entities when the lease expires because the property’s process and quality features Contracts that do not meet FL conditions For income tax purposes parties may agree to treat FL as OL Slide 3 leden 2012

4. PwC CIT - Financial & Operating Lease CountryFinancial LeaseOperating Lease Czech Republic Lease payments uner Corporate Income Tax Act conditions. Asset in the books of lessor Depreciation period changed from 2008 Lease payments Slovakia Until 2012 – asset in the books of lessee, shortened depreciation From 2012 – asset in the books of lessee, “usual“ depreciation period and charge (interest), early termination leads to increase of tax base by interest charged Lease payments If asset purchased below residual price, adjustment by (payments less depreciation) Poland Asset in the books of lessee Depreciation period may be shorter in some cases but min. 5Y. Lease payments Hungary Asset in the books of lessee Depreciation period may be shorter in some cases but min. 5Y. Incentives for lessors in form of additional depreciation/allowance ( 5-6% from purchase price) Lease payments Ukraine Asset in the books of lessee Depreciation as cost Lease payments Slide 4 leden 2012

5. PwC VAT - Financial & Operating Lease CountryFinancial LeaseOperating Lease Czech Republic VAT as the asset had been sold (interest included payment – subject to VAT) Insurance VAT treatment may differ based on contract VAT as it is service from regular payments SlovakiaVAT from regular paymentsVAT as it is service from regular payments Poland VAT as the asset had been sold (interest and commission exempt) (insurance included into total supply - VAT base) VAT as it is service from regular payments Hungary Close-end - VAT as the asset had been sold (interest and commission exempt) Open-end - VAT as it is service from regular payments VAT as it is service from regular payments Ukraine VAT as the asset had been sold (interest and commission exempt) VAT as it is service ( Input VAT monitoring) Slide 5 leden 2012

6. PwC Summary Certain incentive in the form of faster/higher depreciation in FL No definition of FL, resp. different definitions in VAT/CIT based on criteria VAT sometimes imposed interest element in FL Real estate may have different regimes + (absence of) incentives on RETT No need to stick to FV of assets sold after FL due to TP rules If assets purchased for loan, no difference in depreciation, interest usually deductible (thin cap rules may apply) Slide 6 leden 2012

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