Dubai, November 2007 Cyprus post EU accession The ideal investment destination Phidias K Pilides President - Cyprus Investment Promotion Agency (CIPA) Phidias K Pilides President - Cyprus Investment Promotion Agency (CIPA)

Page 2 CIPA Dubai – November 2007 Cyprus Investment Promotion Agency (CIPA) Recently established A company limited by guarantee Only member – the Government of Cyprus Sponsored by the Ministry of Commerce, Industry and Tourism

Page 3 CIPA Dubai – November 2007 Cyprus Investment Promotion Agency (CIPA) 11- member Board of Directors - 8 from private sector - 3 from public sector In the process of recruiting permanent personnel

Page 4 CIPA Dubai – November 2007 CIPA objectives Promote Cyprus as an international investment centre Support foreign investors - accurate information on incentives and procedures - after care development services Submit proposals - improvement of the regulatory environment - enhancement of the competitiveness of the Cyprus economy

Page 5 CIPA Dubai – November 2007 What do you want from your international structure? MAXIMUM AFTER-TAX RETURN

Page 6 CIPA Dubai – November 2007 So, what you need is… Low tax environment for -International holding -International operations -Cross-border transactions and distributions Political, legal and tax systems that are -Stable -Reputable -Sophisticated and experienced The right location and time zone -Good communications -Developed business services -Confidentiality

Page 7 CIPA Dubai – November 2007 Low tax environment The lowest effective tax rates in the European Union 10% headline corporate tax rate, but… Foreign source income generally tax exempt Generous tax deductibility rules reduce effective tax rate Profits on securities transactions tax exempt No withholding taxes Tax free exit EU tax directives apply -Parent / Subsidiary -Interest & Royalties -Reorganisations Cyprus has for you…

Page 8 CIPA Dubai – November 2007 Low tax environment Wide network of more than 40 favourable tax treaties, including China and India Cyprus extensively used for: -Inbound investments in India Real estate structures Financing structures -Outbound investments from India Investments in EU Cyprus has for you…

Page 9 CIPA Dubai – November 2007 Low tax environment Most international transactions free of VAT Low personal tax regime  Top rate 30% OECD approved / EU compliant system A tax administration that wants to help foreign investors

Page 10 CIPA Dubai – November 2007 A stable political and legal system More than 40 years as a Parliamentary democracy Very good relations with neighbouring countries European Union membership since 1 May 2004 English style legal & accounting system operating for 130 years Independent courts applying precedents Sophisticated legal & accounting professions -Internationally trained -Internationally experienced Cyprus has for you…

Page 11 CIPA Dubai – November 2007 The right location Strategic location for both Europe and Asia A thousand years of commerce with Europe and Middle East A Mediterranean climate with an international culture Excellent telecommunications and air services Space to live, build and expand A culture and government sympathetic to expatriates Cyprus has for you…

Page 12 CIPA Dubai – November 2007 Developed business services International quality financial and business services -Banking, tax, business administration, legal, trustee, investment and brokerage An active Stock Exchange An active Securities and Exchange Commission Highly educated and skilled human resources -Internationally qualified and experienced -High standard of living – low cost of living Cyprus has for you…

Page 13 CIPA Dubai – November 2007 Developed business services 30 years experience as a centre for -International business services -Finance -Shipping -Trustee services A tradition of confidentiality, with legal support Authorities who want to help your business thrive in Cyprus Cyprus has for you…

Page 14 CIPA Dubai – November 2007 Further investment opportunities Access to government and EU funds -Research and Development -Innovation -New technologies in energy and transport sectors Opportunities for local projects -Tourism (health/medical, marinas, golf courses) -Larnaca free zone Citizenship for foreign “significant” investors in Cyprus Cyprus has for you…

Page 15 CIPA Dubai – November 2007 The complete solution! Low taxation Impressive network of double tax treaties Access to EU tax directives Access to EU grants and subsidies Strategic location Sophisticated infrastructure Unsurpassed experience in International Business Services An environment friendly to European business Cyprus has for you…

Page 16 CIPA Dubai – November 2007 Investor Cyprus Investee Equity Debt Intangibles People Goods Securities Dividends Interest Royalties Service Charges Sales Margin Equity Debt Intangibles People Goods Securities Dividends Interest Royalties Service Charges Sales Margin Cyprus You can do all of these… and more!

Page 17 CIPA Dubai – November 2007 Following accession to the EU OECD Approved EU Member Tax legislation reform maintains Cyprus’ competitiveness as a reputable international financial centre Access to EU grants and subsidies Adoption of the EURO as from Cyprus accession to the EU creates a multitude of structuring opportunities for inward and outward investments

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