Peru amends mining tax regime

Transcription

1 International Tax World Tax Advisor 7 October 2011 In this issue: Peru amends mining tax regime... 1 European Union: Financial transaction tax proposed... 4 Indonesia: New tax incentives for investment in specified sectors... 5 Netherlands: 2012 Tax Plan includes proposals on dividend withholding tax... 5 Peru: New capital gains tax withholding rules for securities transactions settled on stock exchange... 7 Romania: Worldwide taxation of resident expatriates accelerated... 8 In brief... 8 Are You Getting Your Global Tax Alerts?... 9 Peru amends mining tax regime Peru s Parliament approved new laws on 22 September 2011 that increase mining taxes to fund anti-poverty infrastructure projects in the country. The rules, which make fundamental changes to the taxation of the mining industry, were published in the Official Gazette on 29 September 2011 and apply as from 1 October Supplementary regulations were published on 29 September 2011 and 1 October 2011 to facilitate compliance. The new law distinguishes between companies that have concluded a legal stability agreement with the government and those that have not. The General Mining Law allows holders of mining rights to conclude such agreements with the Peruvian government in connection with new investments in mining operations or an expansion of existing mining operations. Legal stability agreements provide a number of guarantees for the foreign investor, including: equal treatment with national investors; tax stability, i.e. the tax regime (income tax, treatment of exports, transferable nature of consumption taxes, etc.) that applies at the time the agreement is concluded cannot be changed unilaterally during the term agreed with the government (10 or 15 years), and therefore any new tax imposed during that period would not be applicable to the investor; and the ability to exchange currency and remit profits abroad. The new law changes the scheme for royalty payments, so that mining companies that have not signed legal stability agreements with the government will have to pay royalties of 1% to 12% on operating profit; royalties under the previous rules were 1% to 3% on net sales. In addition to these royalties, such companies will be subject to a special tax at a rate ranging from 2% to 8.4% of operating profit. Companies that have concluded legal stability agreements (under the General Mining Law) will be required to pay a special contribution of between 4% and 13.12% of operating profits. Peru is the world s second largest copper and silver producer and a major producer of gold, zinc, lead and other minerals. The revisions to the mining tax rules have been closely watched by foreign mining companies already operating in the country, as well as potential foreign investors interested in Peru s mining sector. Now that the rules have been enacted, they require careful analysis to ensure compliance. World Tax Advisor Page 1 of 9 Copyright 2011, Deloitte Global Services Limited.

2 Changes to royalty system The new rules amending the mining royalty system affect, primarily, the event triggering the obligation to pay a mining royalty, the determination of the taxable base and the applicable rates for calculating the royalty. Under the regime in force until 30 September 2011, the mining royalty was regarded as representing the economic consideration that holders of mining concessions paid to the government for the exploitation of metal and non-metal mineral resources. The royalty was determined on a monthly basis, using a compound cumulative progressive scale applying rates of 1% to 3% to the value of the concentrate or its equivalent, according to prices quoted on the international markets. The amount paid qualified as a cost (i.e. was deductible) for purposes of the corporate income tax. The new rules provide that the mining royalty is to be paid to the government by mining sector enterprises holding mining concessions and entities engaged in the exploitation of metal and non-metal resources, including integrated enterprises, as a charge for the use of the resources. The royalty will be determined based on a progressive system by reference to the quarterly operating profits of the taxpayer. Such profits would be the profits arrived at by deducting sales costs and related operating expenses, including sales and administrative expenses, from the income generated as a result of sales in a calendar quarter, all items being determined at market value according to the income tax provisions. The tax rate ranges from 1% to 12%, depending on the operating margin. In no case may the mining royalty be less than 1% of quarterly sales income, so that mining companies with negative operating profits will have to pay a royalty of at least 1% of sales income derived. The amount paid will qualify as an allowable deduction for corporate income tax purposes. Mining sector enterprises are required to file a quarterly tax return and make payments in local currency within the last 12 business days of the second month following the month in which the quarterly period ends, according to guidelines to be issued by the tax authorities. Failure to make the required payment will result in the imposition of late payment interest, determined by applying the moratoria interest rate provided for tax obligations administered or collected by the Peruvian tax authorities. Exceptionally, for the period October-December 2011, mining sector enterprises will have to submit a return and make monthly prepayments of the royalty determined on the basis of the monthly sales income and the operating margin for The due date for submitting the return and making these payments is the last business day of the month following the month to which the return relates. The royalty for the quarterly period October-December 2011 will be determined based on the operating profits of that period, but cannot be less than 1% of the quarterly sales income. The monthly prepayments will be set off against the amount so determined. The period for submitting the tax return relating to this period and for complying with payment obligations (where there is an outstanding balance, i.e. where the royalty for the quarterly period exceeds the monthly prepayments) will be the last 12 business days of February 2012, according to guidelines to be approved by the tax administration. A credit balance (i.e. where the prepayments exceed the royalty for the quarterly period) will be able to be carried forward and set off against the royalty due for the next quarter. Special mining tax Under the new regime, mining sector enterprises, including integrated enterprises, not enjoying the benefits of legal stability agreements signed under the General Mining Code regime are subject to a new tax based on their operating profits obtained from the sale of metal and non-metal mining resources, taking into account the self-consumption of these goods where such self-consumption is not supported by proper documentation. The special mining tax will be levied on the quarterly operating profits (i.e. income derived from the sale of the minerals less sales costs and related operating expenses, including sales expenses and administrative expenses, all determined at market value) at a tax rate ranging from 2% to 8.4%. Costs and expenses relating to the self-consumption of mineral resources will not be deductible to the extent they are not supported by proper documentation. The amount of special mining tax paid will qualify as an allowable deduction for corporate income tax purposes. Taxpayers will be required to submit tax returns and comply with payment obligations in local currency for each quarter within the last 12 business days of the second month following that in which the relevant quarterly period ends, according to the guidelines to be approved by the tax administration, which will also collect and administer the special mining tax. World Tax Advisor Page 2 of 9 Copyright 2011, Deloitte Global Services Limited.

3 Exceptionally, for the period October-December 2011, taxpayers will have to submit a return and make monthly prepayments of the special mining tax determined on the basis of the monthly sales income and the operating margin for The due date for submitting the return and making the payments is the last business day of the month following the month to which the return relates. The special mining tax for the quarterly period October-December 2011 will be determined based on the operating profits of that period. The monthly prepayments will be set off against the amount so determined. The period for submitting the tax return relating to this period and for complying with payment obligations (where there is an outstanding balance, i.e. where the special mining tax liability for the quarterly period exceeds the monthly prepayments) will be the last 12 business days of February A credit balance (i.e. where the prepayments exceed the special mining tax liability for the quarterly period) will be able to be carried forward and set off against the special mining tax liability due for the next quarter. Additional guidelines to facilitate compliance are expected to be issued shortly. The Mining and Energy Ministry will provide the tax administration with any information the tax administration may request regarding mining sector enterprises, as well as the necessary technical support in relation to any of the procedures connected with the new obligations. Special mining contribution The new rules set out the legal framework for a special mining contribution applicable to mining sector enterprises, including integrated enterprises, that have legal stability agreements in force (and are therefore not subject to the special mining tax) and that voluntarily agree to sign an agreement with the government (represented by the Energy and Mines Ministry). An appendix to the regulations accompanying the new law contains a model agreement. The mining sector enterprises will commit to pay the special mining contribution by signing the agreement. The special mining contribution will then represent a source of public revenue collected for the exploitation of nonrenewable natural resources and will be determined on a progressive basis by reference to the quarterly operating profits obtained. Such profits will be the profits arrived at by deducting sales costs and operating expenses, including sales and administrative expenses, from the income generated as a result of sales in a calendar quarter, all items being determined at market value according to the income tax provisions. The tax rate ranges from 4% to 13.12%, depending on the operating margin. For purposes of determining the special contribution due, mining sector enterprises must deduct mining royalties paid under the law regulating mining royalties, as well as contractual mining royalties, when the payment due dates for such royalties fall after the date on which the enterprises sign the agreement. Any credit balance will be carried forward for set off against special mining contribution liabilities of subsequent quarterly periods. The special contribution amount effectively paid qualifies as an allowable deduction for corporate income tax purposes. Mining sector enterprises are required to file tax returns and comply with payment obligations in local currency for each quarter within the last 12 business days of the second month following the month in which the quarterly period ends, according to guidelines to be issued by the tax authorities. Any delay in making payments will give rise to penalty interest as laid down in the Tax Code. The funds obtained by the government from collecting the special mining contribution qualify as income of the public treasury. Exceptionally, as from the date of the signing of the agreement, the tax authorities will carry out all the functions associated with the payment and collection of this public revenue source. The tax court will address any controversies relating to the special contribution as an administrative tribunal of second instance. Exceptionally, for the period October-December 2011, mining sector enterprises will have to submit a return and make monthly prepayments of the special mining contribution determined on the basis of the monthly sales income and the operating margin for The due date for submitting the return and making these payments is the last business day of the month following the month to which the return relates. The monthly prepayments will be set off against the special mining contribution for the quarterly period October-December The period for submitting the tax return relating to this period and for complying with payment obligations (where there is an outstanding balance, i.e. where the special mining contribution for the quarterly period exceeds the monthly prepayments) will be the last 12 business days of February A credit balance (i.e. where the prepayments exceed the special mining contribution for the quarterly period) will be able to be carried forward and set off against the special mining tax contribution due for the next quarter. World Tax Advisor Page 3 of 9 Copyright 2011, Deloitte Global Services Limited.

4 Comments The main characteristics of the new rules, which dramatically change the tax regime applying to this key sector of the Peruvian economy, can be summarized as follows: Without legal stability agreement With agreement Royalty Special tax Special contribution Regime Amended New New Minimum payment 1% of sales Not applicable Not applicable Base of calculation Operating profits Operating profits Operating profits The government expects to generate additional annual revenue of approximately USD 1,000 million from the new regime. Although the changes to the mining tax regime will increase the tax burden for the mining sector from 38.5% to 42.7%, according to the economic analysis performed by the government, this still leaves the Peruvian market in a competitive position in relation to other major markets. The new provisions were approved as a matter of urgency, with a view to expediting the issuing of all regulations necessary to enable the government to begin collecting the relevant royalties, taxes and contributions. If everything proceeds as planned, the collection of these payments will commence in November Gustavo Lopez-Ameri (Lima) Deloitte Peru glopezameri@deloitte.com Ana Luz Bandini (New York) Senior Manager Deloitte Tax LLP anbandini@deloitte.com European Union: Financial transaction tax proposed The European Commission has presented a proposal for a financial transaction tax to be levied in the EU. The plan is to charge the tax on financial transactions undertaken by EU resident companies, EU resident branches of non- EU groups and EU-based customers of non-eu companies. The tax would be levied on all transactions on financial instruments between financial institutions when at least one party to the transaction is located in the EU. The exchange of shares and bonds would be taxed at a rate of 0.1% and derivative contracts at a rate of 0.01%. The European Commission has proposed that the tax should come into effect as from 1 January The Commission estimates that this could raise approximately EUR 57 billion every year in EU revenue and the Commission says it would propose an unspecified reduction in national contributions to the EU budget. The proposal will be discussed by all Member States in the EU s Council of Ministers and there must be unanimous agreement among the Member States. The Commission also will present the idea of the financial transactions tax to the G20 summit in November, recognizing the obvious point that, were the EU to introduce such a tax, transactions would move from the EU (and principally London) to New York, Hong Kong and Singapore. As it is estimated that London accounts for about 80% of EU trading in financial transactions, introducing the tax would have a significantly negative effect on the U.K. economy, including tax payments being reduced. The U.K. Treasury has stated that it would veto an EUwide tax. Bill Dodwell (London) Deloitte United Kingdom bdodwell@deloitte.co.uk World Tax Advisor Page 4 of 9 Copyright 2011, Deloitte Global Services Limited.

5 Indonesia: New tax incentives for investment in specified sectors The Indonesian Minister of Finance issued the long-awaited regulation on a tax holiday regime for new domestic or foreign investment in certain business sectors on 15 August 2011 (Regulation No. 130/PMK.011/2011). The regulation, which applies as from the date it was issued, provides beneficial tax treatment to manufacturing projects in high priority sectors (i.e. base metals, oil refining, petrochemicals, machine tools and renewable energy) and remote areas. The tax incentives are as follows: 1. An exemption from corporate income tax for five to 10 years beginning from the date commercial production commences; 2. A two-year 50% reduction in corporate income tax liability after the end of the tax holiday period; and 3. An extension of the exemption or reduction in corporate income tax, depending on the competitiveness and strategic value of the industry. To qualify, the company must meet the following requirements: Invest at least INR 1 trillion (approximately USD 117 million) in a qualified pioneer industry; Deposit at least 10% of the total investment in an Indonesian bank, which cannot be withdrawn before the company undertakes its investment plan; and Be a new taxpayer with Indonesian legal entity status (however, existing investors that have operated for less than 12 months also may qualify for the tax holiday). Application for the tax holiday under PMK-130 must be made to the Minister of Industry or the Head of the Capital Investment Coordinating Board by 15 August 2014, i.e. within three years from the date the regulation was issued. The Minister will submit its recommendation to the Minister of Finance, who will issue a decision on the application in the form of a decree. The following factors will then be taken into account in granting the tax holiday: The availability of infrastructure where the investment is located; The use of local labor; The completion of a study that shows the criteria for a pioneer industry are met; Clear plans for a transfer of technology; and The availability of tax sparing, i.e. the granting of tax relief in the country of residence of the investor that fully takes into account the amount of the tax benefit granted in Indonesia. Firdaus Asikin (Jakarta) Deloitte Indonesia fasikin@deloitte.com Connie Chu (Jakarta) Senior Technical Advisor Deloitte Indonesia cchu@deloitte.com Netherlands: 2012 Tax Plan includes proposals on dividend withholding tax The recently announced Netherlands 2012 Tax Plan includes provisions that would extend the refund of Dutch dividend withholding tax to tax-exempt investors outside the EU/EEA and tax members in certain cooperatives. If approved by Parliament, the new measures would apply as from 1 January Refund of dividend withholding tax Currently, a full refund of dividend withholding tax is available for Dutch resident entities that are not subject to tax and comparable tax-exempt entities resident in an EU/EEA country (provided they would not be subject to tax if they were resident in the Netherlands). Although neither Dutch nor EU/EEA resident fiscal investment institutions (FIIs) and exempt investment institutions (EIIs) qualify for the full dividend refund of dividend withholding tax, a credit for the amount of World Tax Advisor Page 5 of 9 Copyright 2011, Deloitte Global Services Limited.

6 dividend withholding tax already withheld on an initial distribution attaches to a redistribution of a dividend by a Dutch resident FII within eight months of its receipt. The Tax Plan 2012 proposes to extend the availability of a full refund of dividend withholding tax to entities resident outside the EU/EEA (i.e. third country entities) if the following requirements are met: The entity is established in a non-eu/eea country with which the Netherlands has concluded a treaty that includes an exchange of information provision; The third country entity is not subject to tax in its state of residence and would not be subject to tax in the Netherlands had it been resident in the Netherlands; and The investment in the Dutch entity is considered a portfolio investment within the meaning of article 63 of the Treaty on the Functioning of the European Union (TFEU), i.e. an investment in which the third country entity does not have a decisive influence in the decision-making. This extension would not apply to foreign companies (i.e. both third country and EU/EEA companies) that are comparable to Dutch FIIs or EIIs. Comments The explanatory notes to the 2012 Tax Plan make clear that the purpose of this measure is to extend the availability of a full refund of dividend withholding tax to exempt pension funds, sovereign wealth funds and other exempt companies in third countries. However, in its current form, the proposal may lead to arbitrary results: The requirement that an entity not be subject to tax in its state of residence or not be subject to tax had it been based in the Netherlands is comparable to the requirements that currently apply to entities resident in EU/EEA countries. The not subject to tax requirement, however, cannot be met by entities that are subject to a 0% rate in their state of residence; in these cases, the entity is effectively not taxed (as is the case for a tax-exempt company), but it will not qualify for a full refund of Dutch dividend withholding tax. The availability of the dividend withholding tax refund should not depend whether the third country entity is tax-exempt or taxed at 0%. Only portfolio investments would qualify for a full refund of withholding tax a refund would not be available if the investment qualifies as a direct investment within the meaning of the standstill provision of article 64 of the TFEU (the provision that allows EU Member States to maintain restrictive measures to direct investments from third countries in cases where the measures existed before 31 December 1993). Effectively, that would mean that only investments to which the freedom of establishment does not apply could benefit from the full dividend withholding tax refund. The freedom of establishment is applicable to direct investments, but it does not apply to third country situations. The current proposal does not apply to companies that are comparable to Dutch FIIs or EIIs. EIIs are exempt and FIIs are granted a tax reduction when dividends are redistributed to their shareholders. However, since the tax reduction is not applicable to nonresident FIIs (because they are not Dutch residents), we would argue that nonresident FIIs should be granted some opportunity to neutralize the dividend withholding tax. Cooperative society structures The 2012 Tax Plan includes anti-abuse rules to prevent structures in which Dutch cooperative societies are used as intermediate holding companies purely to avoid taxation. In cases where the anti-abuse rule is triggered, members of the cooperative would be liable to a 15% dividend withholding tax. The measure would apply where (i) the cooperative holds shares in a company with the main purpose of avoiding dividend withholding tax or foreign tax at the level of another entity or person, and (ii) the participation in the cooperative society is not part of the business assets of the enterprise. The explanatory notes to the Tax Plan state that a member in a cooperative society would become liable to dividend withholding tax only in abusive situations, such as cases where wholly artificial structures are used, e.g. when a nonresident company that holds an interest in a Dutch or foreign company interposes a Dutch resident cooperative to avoid dividend withholding tax and the cooperative society has no real substance. If a wholly artificial structure is deemed to exist, the cooperative society would be treated as a transparent entity and the participants in the cooperative for which the membership rights are not part of the business assets of an enterprise would become liable to Dutch dividend withholding tax. World Tax Advisor Page 6 of 9 Copyright 2011, Deloitte Global Services Limited.

7 In determining whether a structure is wholly artificial, presumably reference can be made to case law of the European Court of Justice (ECJ), e.g. the Cadbury Schweppes case, in which the ECJ held that at least letter box or front subsidiaries qualify. However, the exact conditions to constitute a wholly artificial structure are not clear. For other cooperatives, there are no changes under the 2012 Tax Plan. Hans van den Hurk (Eindhoven) Deloitte Netherlands hvandenhurk@deloitte.nl Jasper Korving (Eindhoven) Junior Manager Deloitte Netherlands jkorving@deloitte.nl Nathalie Vlug (Eindhoven) Analyst Deloitte Netherlands nvlug@deloitte.nl Peru: New capital gains tax withholding rules for securities transactions settled on stock exchange Peru s Central Securities Depository (CAVALI) will be required to withhold capital gains tax on securities transactions settled in cash on the stock exchange on or after 1 November Before this date, nonresident taxpayers are responsible for paying the capital gains tax directly (e.g. through a tax agent). In light of the approaching deadline, amended guidance on determining the tax basis of certain securities acquired before 1 January 2010 was issued on 29 September 2011 (Supreme Decree EF). Background The requirement to act as a withholding agent in the above circumstances will apply to Peruvian clearing and settlement institutions. Currently, CAVALI is the only such institution. To calculate the correct withholding amount applicable to capital gains derived from the alienation or redemption of securities settled in cash, CAVALI will have to take into account the tax basis recorded in its database or an equivalent source. The capital gains tax will be determined on a transaction-by-transaction basis, taking into account the market value and tax basis of the securities at the time of the alienation/redemption. Any potential capital gain will be subject to a 5% withholding tax, levied at the time the funds are transferred from the buyer to the seller. Specific rules were issued earlier in 2011 on how to identify the party (e.g. CAVALI itself, the issuer, the custodian bank or other participants) required to report the cost of securities acquired on or after 10 July 2011 to CAVALI depending on the type of transaction. Failure to comply with the reporting obligation for such securities will result in a tax basis equal to zero for purposes of CAVALI s calculation of the amount to be withheld on the disposal or redemption of these securities. Moreover, to facilitate compliance once the withholding requirement becomes enforceable, these earlier regulations required that the holders of securities acquired before 10 July 2011 communicate their tax cost to CAVALI by 30 September As issued, the regulations provided that failure to comply with this reporting obligation would result in a tax basis equal to zero in all cases for purposes of CAVALI s calculation of the amount to be withheld on the disposal or redemption of such securities. September decree Supreme Decree EF provides that the failure to comply with the 30 September 2011 reporting obligation in the case of securities acquired before 1 January 2010 will result in a tax basis equal to the securities value as of 31 December 2009 (rather than zero) for purposes of CAVALI s calculation of the amount to be withheld. This change was made to avoid adversely affecting investors that acquired their securities when the securities were exempt from capital gains tax and that consequently might be unable to accurately support their basis. The decree does not impact the zero basis that will be used by CAVALI with respect to late reporting on securities acquired in the period 1 January 9 July World Tax Advisor Page 7 of 9 Copyright 2011, Deloitte Global Services Limited.

8 Comments Nonresident taxpayers should be able to file a refund claim with Peru s tax authorities for any capital gains tax withheld in excess if they are able to establish the tax basis of the securities disposed of under the generally applicable rules. However, additional guidelines on making such claims may be necessary. Gustavo Lopez-Ameri (Lima) Deloitte Peru glopezameri@deloitte.com Ana Luz Bandini (New York) Senior Manager Deloitte Tax LLP anbandini@deloitte.com Romania: Worldwide taxation of resident expatriates accelerated Recent changes to Romania s tax law introduce new tax obligations on foreign nationals in the country. Under the new rules, which will apply to income derived during calendar year 2012, foreign individuals who became Romanian tax residents during the first year of their stay in the country will become taxable on their worldwide income. Currently, foreign nationals who become Romanian residents either by having their center of vital interests in Romania or by being present in the country for more than 183 days in any 12-month calendar year period do not become liable for Romanian income tax on their worldwide income until the fourth consecutive year of residence in Romania. As a result of the new rules, foreign nationals will be required to report their foreign-source income derived during 2012 through an annual tax return. The filing deadline for the 2012 annual tax return is 25 May By repealing the three-year tax exemption on the foreign income of expatriates, the Romanian authorities have evidenced their intention to improve tax collection to the state budget and, at the same time, to allow foreign individuals to settle their tax residence in Romania starting with the second year of their stay in the country. It is anticipated that the authorities will issue practical guidance on the rules in due course. Pieter Wessel (Bucharest) Deloitte Romania pwessel@deloittece.com Raluca Bontas (Bucharest) Senior Manager Deloitte Romania rbontas@deloittece.com In brief France As from 1 November 2011, a new hotel tax of 2% will apply on the supply of hotel accommodations for which the price per night, VAT excluded, exceeds EUR 200. Greece The deadline for filing income tax returns by legal entities and individuals that expired on 30 September 2011 is extended to 31 October Separately, the Parliament has approved a special duty that will be levied on commercial and residential buildings powered by electricity. Portugal A 3.5% extraordinary surtax has been introduced on income obtained by resident individuals. Income subject to the tax includes employment and self-employment income, business income, investment income, rental income and capital gains from the sale of immovable property. The surtax will be applicable to aggregated personal income that exceeds the annual value of the national minimum wage (EUR 6,790). The surtax will apply on income derived during calendar year 2011, and, taking into account normal marginal tax rates that range from 11.5% to 46.5%, the extraordinary surtax can represent a maximum tax rate on personal income of up to 50%. World Tax Advisor Page 8 of 9 Copyright 2011, Deloitte Global Services Limited.

9 Are You Getting Your Global Tax Alerts? Throughout the week, Deloitte provides commentary and analysis on developments affecting cross-border transactions on a free subscription basis delivered straight to your . Read the recent alerts below or visit the archive. Subscribe: Archives: s_ _tax_wta United States Customs proposes policy change on post-importation price adjustments Customs and Border Protection announced it has reexamined its views on the applicability of the transaction value method of customs valuation to transactions involving certain post-importation adjustments to a transfer price and an importer s ability to obtain a duty refund. [Issued: 4 October 2011] URL: x_wta_ URL: s_ _tax_wta_ Talk to Us If you have questions or comments about the content of Global InSight, or would like to contact a member of the IAS Newsletter Editorial Board, contact: Susan Lyons, Director Washington International Tax Services Deloitte Tax LLP slyons@deloitte.com -or- Connie Angle Washington International Tax Services Deloitte Tax LLP cangle@deloitte.com About Deloitte Deloitte refers to one or more of Deloitte Global Services Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Global Services Limited and its member firms. Deloitte is the brand under which tens of thousands of dedicated professionals in independent firms throughout the world collaborate to provide audit, consulting, financial advisory, risk management, and tax services to selected clients. These firms are members of Deloitte Touche Tohmatsu Limited (DTTL), a UK private company limited by guarantee. Each member firm provides services in a particular geographic area and is subject to the laws and professional regulations of the particular country or countries in which it operates. DTTL does not itself provide services to clients. DTTL and each DTTL member firm are separate and distinct legal entities, which cannot obligate each other. DTTL and each DTTL member firm are liable only for their own acts or omissions and not those of each other. Each DTTL member firm is structured differently in accordance with national laws, regulations, customary practice, and other factors, and may secure the provision of professional services in its territory through subsidiaries, affiliates, and/or other entities. Disclaimer This publication contains general information only, and none of Deloitte Global Services Limited, its member firms, or its and their affiliates are, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. None of Deloitte Global Services Limited, its member firms, or its and their respective affiliates shall be responsible for any loss whatsoever sustained by any person who relies on this publication. World Tax Advisor Page 9 of 9 Copyright 2011, Deloitte Global Services Limited.