Exchange of information 11 Initial Directive EU 2011/16/EU as regards administrative cooperation in the field of taxation, covering: exchange of information upon demand spontaneous exchange of information, and automatic exchange of information on specific categories of data (salaries, pensions, director’s fees, certain insurance and real estate) Amended to include automatic exchange of information based on the Common Reporting Standard: Directive 2014/107/EU of 9 December 2014 as regards mandatory automatic exchange of information in the field of taxation Amended to include automatic exchange of tax rulings : Directive 2015/2376 of 8 December 2015 Going global © 2015 Deloitte Tax & Consulting OECD Common Reporting Standard: more than 100 jurisdictions to participate US FATCA EU Directive on mandatory automatic exchange of information New QI TRACE DTT exchange upon demand

Automatic exchange of tax rulings Background “A tax ruling is a confirmation or assurance that tax authorities give to taxpayers on how their tax will be calculated. Tax rulings are typically issued to provide legal certainty for taxpayers, often by confirming the tax treatment of a large or complex commercial transaction. Tax rulings are mostly given in advance of the transaction taking place or a tax return being filed” European Commission memo 15/ March 2015 “Tax base erosion is considerably reducing national tax revenues, which hinders Member States in applying growth-friendly tax policies […] rulings concerning tax-driven structures have, in certain cases, led to a low level of taxation of artificially high amounts of income in the country issuing, amending or renewing the advance ruling and left artificially low amounts of income to be taxed in any other countries involved. An increase in transparency is therefore urgently required” Directive 2015/2376 of 8 December 2015 amending Directive 2011/16/EU What is a tax ruling ? Why new transparency requirements for tax rulings ? 2015 Deloitte Tax & Consulting

3 Automatic Exchange of Tax Rulings EU Directive of 8 December 2015 All corporate taxpayers. Natural persons are out of scope SME exception: ATA / APA issued before 1 April 2016 to companies with an annual turnover of less than EUR 40m at group level). SME exception does not apply to companies involved in investment or financial activities Advance cross-border tax rulings (ATA) AND Advance pricing agreements (APA) Who?What? -Identification of the person and the group, amount of transaction(s) -Summary of content of ATA / APA (but no disclosure of commercial, industrial, professional secrets) -Dates of issuance, amendment or renewal of ATA / APA -Start/end date of the period of validity of the ATA / APA -Identification of the method used for TP purposes in the APA -Etc. How ? Central Directory to be developed by the EU Commission where information exchanged will be stored Communication with all other Member States Communication of limited information with the EU Commission Member States will be able to request further information including the full text of the ATA / APA

Automatic exchange of tax rulings EU Directive of 8 December 2015 Concerns the interpretation or application of a legal/administrative provision(s) relating to tax matters Relates to cross-border transaction(s) or question whether a permanent establishment is present In advance of the transactions/activities relating to possible permanent establishment, filing of a tax return covering the period of these transactions/activities, in the context of a tax audit, … “Cross-border transaction” means:  not all the parties to the transaction are resident in the Member State generating the ruling  any of the parties to the transaction is simultaneously resident for tax purposes in more than one jurisdiction  transactions or series of transactions which have a cross border impact Determines in advance of cross-border transactions between associated enterprises:  The criteria determining the transfer pricing of a transaction  The method attributing the profits to a permanent establishment Associated enterprises: where an enterprise or same person(s) participate(s) directly or indirectly in the management, control or capital of another enterprise A cross-border transaction means:  Transaction or series of transactions involving associated enterprises which are not all tax resident for tax purposes of the same jurisdiction  transactions or series thereof having a cross border impact Any agreement, communication or any other instrument or action with similar effects “Advance cross-border ruling”“Advance Pricing Arrangement” Both definitions covers any material form irrespectively of its binding or non-binding character 2015 Deloitte Tax & Consulting

Automatic Exchange of Tax Rulings EU Directive of 8 December OUTIN If still valid on 1 Jan 2014 IN In all cases IN In all cases Before 1st Jan 2018 Before 1st Jan 2018 Within 3 months following the end of half of the calendar year during which ATA / APA has been issued 2015 Deloitte Tax & Consulting Notion of “issued, amended or renewed” !