Kevin Smits kevin.smits@arcticcorp.ee +31642117214

BORN IN ESTONIA

WHY ESTONIA? Access to a market of 300 million consumers One of the most advanced e-societies in the world Ease of doing business Low cost of doing business Close to Northern European business centers Political and economic stability Equal treatment and protection of investors Tax advantageous "onshore" jurisdiction https://youtu.be/nKfO5UDd2TY

Tax advantageous "onshore" jurisdiction Corporate Income tax Estonia applies a unique and favorable approach on taxation of corporate profits. Resident companies and permanent establishments of foreign entities (including branches) are subject to 20% income tax only in respect of all distributions (both actual and deemed), Profit retained in the company is taxed at 0%. As of January 1, 2009 dividends paid to non-residents are no longer subject to withholding tax at the general rate of 20%, irrespective of participation in the share capital of the distributing Estonian company. Tax Treaties Estonia has effective tax treaties with 51 countries. Under the double tax treaties a significant reduction of withholding taxes on various payments to non-residents is available. Considerations for investors The aim of the current Estonian tax policy is to shift the tax burden from labour to consumption. Flat income tax rate since 1994 (flat income tax rate at 20% applies to both individuals and companies). Unique corporate tax system since 2000: all undistributed corporate profits are tax-exempt. (0%) Individuals can have investment account to benefit from 0% corporate income tax. Kevin Smits kevin.smits@arcticcorp.ee +31642117214 For more information on business (opportunities) in Estonia and/or advantages of an Estonian company as international tax planning tool