1 Nexia World Tax Meeting Vienna, May 31, 2008 European Holding Company Analysis by Chris Leenders, International Tax Partner at Koenen en Co, Member of Nexia The Netherlands/ Nexia International

2 European Holding Company Analysis Countries covered: 20 Updates as per January 1, 2008 Issues covered: 17

3 European Holding Company Analysis Countries covered: Austria, Belgium, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Luxembourg, Malta, The Netherlands, Portugal, Romania, Spain, Sweden, Switzerland, United Kingdom

4 European Holding Company Analysis Editorial aspects Word document PDF file on website Update annually Countries not covered?

5 European Holding Company Analysis Issues 1.Treatment of dividend income Participation exemption: 18 countries (full or 95%) Taxable with credit: 2 countries (Greece and UK)

6 European Holding Company Analysis 2.Minimum participation At least 10% : 12 (some 0% in case of unlisted shares) At least 5% : 4 (France, Ireland, The Netherlands, Spain) Other/0% : 4 (Cyprus, UK, Hungary, Portugal)

7 European Holding Company Analysis 3.Treatment of capital gains Participation exemption: 15 (some 95%) Taxable with credit: 2 (Greece, UK) Taxable: 3 (Hungary, Ireland (in case not EU/no DTA), Romania)

8 European Holding Company Analysis 4.Minimum participation In accordance with requirements mentioned in § 2

9 European Holding Company Analysis 5.Minimum “ownership” period requirements 1 year :10 None :7 (Cyprus, Germany, Hungary, Netherlands, Malta, Sweden, UK) 2 years:3 (Greece, France, Romania)

10 European Holding Company Analysis 6.Active business test on underlying participation Yes :10 No :10 (Czech Republic, Romania, France, Greece, Germany, Ireland, Luxembourg, Malta, Portugal, Sweden)

11 European Holding Company Analysis 7.Subject to tax-test on underlying participation Yes :13 No :7 (Greece, Netherlands (if active business), Ireland, Luxembourg (if EU sub), Malta (if EU sub), Portugal, Switzerland)

12 European Holding Company Analysis 8.Rates CIT, DWHT, other taxes To various to give any comment

13 European Holding Company Analysis 11.Withholding tax on liquidation Yes :12 No :8 (Cyprus, Denmark, Greece, Ireland, Luxembourg, Malta, Spain (in some cases), UK)

14 European Holding Company Analysis 12.Interest deductibility; Debt/equity ratio’s Interest deductible: Yes: 16 / No 4 (Cyprus, Denmark, Portugal, Romania) Debt/equity ratio’s: Yes: 10 / No 6 (Austria, Finland, Greece, Ireland, Malta, Sweden)

15 European Holding Company Analysis 13. CFC and/or anti-abuse regulations? CFC: Yes: 11 / No: 9 (Austria, Czech Republic, Greece, Ireland, Luxembourg, Malta, Netherlands, Romania, Switzerland) Anti-abuse: Yes: 6 (France, Germany, Netherlands, Portugal, Spain, Switzerland) / No: 14

16 European Holding Company Analysis 14. Advance Tax Rulings Yes: 16 No: 3 (France, Greece, Ireland)

17 European Holding Company Analysis 16. Double tax treaty network Does the holding company receive treaty protection? Yes: 18 / No: 2 (Cyprus, Greece) Are anti treaty shopping / beneficial ownerships tests included? Yes: 15 / No: 5 (Czech Republic, Ireland, Greece, Hungary, Romania (?)

18 European Holding Company Analysis 17. Exchange control restrictions? None

19 European Holding Company Analysis QUESTIONS ? THANK YOU !