Establishing a studio in European Union

Saulė Dagilytė

DevGAMM Minsk

18 October 2014

Models

2

Developer IP holder Publisher

Mostly interested in:

Environment

EU Blue Card

Employment Taxation

The right for VAT deduction

Mostly interested in:

Legal environment

Corporate Income Tax

Withholding taxes

between EU & US

Corporate Income Tax

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Country CIT rate Country CIT rate

Lithuania 5/15 % Cyprus 12,5%

Latvia 15% Sweden 22%

Estonia 21% Germany 24,5%

Poland 19% Luxembourg 21%

Malta 5%* Netherlands 25%

* - after tax refund, when certain condition are met.

Withholding Tax b/w EU & US*

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* Data from DTTs

Source country WTH tax on royalties Source country WTH tax on royalties

Lithuania 5/10 % Cyprus 0%

Latvia 5/10% Sweden 0%

Estonia 5/10% Germany 0%

Poland 10% Luxembourg 0%

Malta 0/10% Netherlands 0%

EU Blue Card

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* - unofficial data of 2012.

Country Salary threshold Country Salary threshold

Lithuania €1,250 Cyprus €2,610*

Latvia €1,300 Sweden €5,010

Estonia €1,374-1,026 Germany €3,020 - €3,870

Poland €1,275 Luxembourg €4,530 - €5,660

Malta €1,810 * Netherlands €5,800

Employment Taxation

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Employer Cost of €1 net The chart here shows what employers must spend to pay each net euro to an employee.

Source: The Economist based on the data provided by EY in 2013.

Vilnius Tech Park

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ESTONIAPärnu mnt 1510141 Tallinnphone +372 6 400 900estonia@sorainen.com

LATVIAKr. Valdemāra iela 21LV-1010 Rigaphone +371 67 365 000latvia@sorainen.com

LITHUANIAJogailos 4LT-01116 Vilniusphone +370 52 685 040lithuania@sorainen.com

BELARUSul Nemiga 40220004 Minskphone +375 17 306 2102belarus@sorainen.com

www.sorainen.com

Thank you!

Saulė Dagilytė

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saule.dagilyte@sorainen.com

Head of Tax & Customs Practice

+370 61 039 616