1. The Luxembourg Treaty Network Luxembourg Tax – Challenges for the Future British Chamber of Commerce for Luxembourg 15 May 2013 Julien Bieber, Tax Director Jonathan Norman, Tax Manager KPMG Luxembourg DRAFT – FOR DISCUSSION PURPOSES ONLY

2. © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. 2 Luxembourg Tax Treaty Network The Luxembourg Tax Treaty Network 64 In force 28 In negotiation / Pending ratification As at April 2013 Source: impotsdirects.public.lu DRAFT – FOR DISCUSSION PURPOSES ONLY

3. © 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. 64 Tax Treaties in force ArmeniaFinlandJapanUSASouth Korea AustriaFranceLatviaNorwaySpain AzerbaijanGeorgia LiechtensteinPanamaSweden BahrainGermanyLithuaniaPolandSwitzerland BarbadosGreeceMalaysiaPortugalThailand BelgiumHong KongMaltaQatarTrinidad & Tobago BrazilHungaryMauritius RomaniaTunisia BulgariaIcelandMexicoRussiaTurkey CanadaIndiaMoldavaSan MarinoUnited Kingdom ChinaIndonesiaMonacoSingapore United Arab Emirates Czech RepublicIrelandMongoliaSlovakiaUzbekistan DenmarkIsraelMoroccoSloveniaVietnam EstoniaItalyNetherlands South Africa Luxembourg Tax Treaty Network

4. © 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. 28 Tax Treaties in negotiation / pending ratification AlbaniaKazakhstanSaudi Arabia ArgentinaKyrgyzstanSerbia BotswanaKuwaitSeychelles BruneiLaosSri Lanka CroatiaLebanonSyria CyprusMacedoniaTaiwan EgyptNew ZealandTajikistan GuernseyOmanUkraine Isle of ManPakistanUruguay Jersey Luxembourg Tax Treaty Network

5. © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. 5 New Luxembourg/Germany Double Tax Treaty (Signed, not in force) Aligned with OECD Model “Real estate-rich” companies clause (Article 13-2) Investment funds – SICAR, SICAF, SICAV and contractual investment funds (FCP) can claim 15% withholding tax on dividends New protocol to the Poland/Luxembourg Double Tax Treaty (Signed, Not yet in force) “Real estate-rich” companies clause “Artificial arrangements” Protocols to other Double Tax Treaties / Exchange of Information New type of tax treaties: FATCA EU Directives Law of 21 July 2012 on administrative cooperation in the field of taxation (implementing EU Directive): Recovery of tax claims, Facilitating exchange of information Luxembourg Double Tax Treaties – Recent Developments DRAFT – FOR DISCUSSION PURPOSES ONLY

6. © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. 6 Luxembourg – Mongolia Double Tax Treaty: Mongolian Parliament approved proposal to cancel the treaty effective 1 January 2014 Side-reaction to a scandal involving Mongolian trusts with Chinese beneficiaries Lenient tax treatment of exit / profit repatriation, i.e. No Mongolian taxing right for the disposal of shares in Mongolian mining companies (land-rich) Limited WHT on dividends vs. other treaties concluded by Mongolia Luxembourg a preferred location for investments in Mongolia (Energy & Natural Resources) Luxembourg Government has proposed meeting dates to negotiate new Double Tax Treaty Luxembourg Double Tax Treaties – Recent Developments Tax treatyTermination date Luxembourg1 January 2014 Netherlands1 January 2014 UAE1 January 2015 Kuwait1 January 2015 DRAFT – FOR DISCUSSION PURPOSES ONLY

7. © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. 7 Luxembourg Investment Protection Treaty Network The Belgo-Lux IPT Network 67 In force 27 In negotiation / Pending ratification As at April 2013 Source: unctad.org; mae.lu DRAFT – FOR DISCUSSION PURPOSES ONLY

8. © 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.