Setting Up a Business In Serbia

INTERNATIONAL CENTER FOR FINANCIAL MARKET DEVELOPMENT

SECURITIES BROKER-DEALER INTERCITY BROKER

AUDIT & CONSULTING

Why Serbia?

Low Operating Costs

Customs Free Access to the 15% of the World Market

Competitive Tax Regime

Attractive Investment Incentives

Strategic Geographic Location

Multilingual and Highly Skilled Workforce

Internationally Recognized Leader in Business Reforms

Home of Largest Greenfield Investments in Southeast Europe

Table of Contents
Foreword ........................................................................................................................................................................... 3 Setting Up Business ........................................................................................................................................................... 4 Multiple Legal Structures Available .............................................................................................................................. 4 Labor Market and Employment Issues ......................................................................................................................... 6 Non-Serbian Citizens Working in Serbia ....................................................................................................................... 7 Office Space Market ...................................................................................................................................................... 8 Taxation in Serbia.............................................................................................................................................................. 8 Corporate Tax................................................................................................................................................................ 8 Value Added Tax ......................................................................................................................................................... 10 Personal Taxation........................................................................................................................................................ 10 Double Taxation Relief ................................................................................................................................................ 11 Liberalized Trade ............................................................................................................................................................. 12 Local Market and External Trade ................................................................................................................................ 12 Free Trade Agreements .............................................................................................................................................. 13 World Trade Organization (WTO) ............................................................................................................................... 15 Investment Infrastructure ............................................................................................................................................... 15 Transportation Infrastructure ..................................................................................................................................... 15 Free Trade Zones......................................................................................................................................................... 17 Government Support for Business .................................................................................................................................. 18 Financial Incentives ..................................................................................................................................................... 19 Tax Incentives.............................................................................................................................................................. 20 Other Incentives .......................................................................................................................................................... 20 Appendix I European Cities and Regions of the Future 2012/13 .................................................................................... 22 Appendix II Doing Business in Serbia in 2013, World Bank Report ................................................................................ 23 Serbia Key Indicators....................................................................................................................................................... 24 Contact ............................................................................................................................................................................ 25

Foreword
We are a cost-efficient alternative to multinational consulting companies.

Securities Broker-Dealer Intercity Broker

Securities trading Investment Advisory

NDP Audit & Consulting

Accounting Tax optimization Audit Outsourcing

International Center For Financial Market Development

M&A Matchmaking Due Dilligence Company formation Employment issues

Strengths and products from all companies comprising our Business Group enable serving clients in terms of pricing and positioning to cover and attract more of the market by offering "one-stop shop" services and distinctive "turnkey" solutions. By assisting international clients for years we know that investors need quick information and personalized advice and assistance when it comes to company search and/or setting up a new business abroad, financing, taxation, office placement, employment issues, selecting an accountant, or other related services such as complete virtual office with mail forwarding and secretarial services. We can also find a perfect location to rent, to buy or build your premises regarding your needs and budget in Serbia. We can provide daily management and ensure easy start-up that will allow you to focus on your core business until your team becomes fully operational. Tax minimization and optimization due to special tax structures as well as double tax avoidance treaties signed by Serbia with other countries are one of our top areas of expertise. Beside general business assistance we can provide any other advisory services in Serbia related to business growth and expansion, legal issues and contracts, shareholding structure, employment issues etc. Moreover, we often handle and present projects to the local banks on behalf of our clients and negotiate the best possible rate and terms for your project.

Setting Up Business
Serbia has grown into one of the premier investment locations in Central and Eastern Europe resulting in around USD 26 billion of inward FDI since 2000. It attracted some USD 2.71bn of foreign direct investments in 2011, becoming the best performer in Southeast Europe, as the United Nations Conference on Trade and Development (UNCTAD) stated in its 2012 World Investment Report. The Report also showed that in 2011 Serbia was destination country for 50% of Greenfield FDI in the SEE region. Many world-renowned companies topped by Fiat, Telenor, Stada, Michelin, Coca-Cola, Microsoft, Gazprom, Intesa Sanpaolo, Siemens, etc. have recognized Serbias potential and decided to locate their operations in the country. For some, Serbia serves as a manufacturing hub that enables duty-free exports to a market of 1 billion people. Others are attracted by highly-skilled, easily-trained, English proficient workforce and rewarding tax system. Foreign investors are accorded national treatment and provided with full legal security and protection in respect to the rights acquired by the virtue of investment.

Multiple Legal Structures Available

Foreign investors are accorded national treatment and provided with full legal security and protection in respect to the rights acquired by the virtue of investment. When setting up and registering a business in Serbia there are several different legal structures available and one can choose a type of operation among different options Representative office, Branch office or Subsidiary. Representative Office A representative office of a foreign company is a separate organizational unit of a foreign company that may carry out preliminary and preparatory work leading to the conclusion of a transaction by that company. The office has to be registered with the SBRA. It does not have the status of an independent legal entity; it may not conclude contracts for its own account and therefore may not have its own income. A representative office may only enter into transactions relating to founders business activity. A foreign company is liable for any obligations towards third parties that may arise in the operations of its representative office. Branch Office The branch of a foreign company is a separate organizational unit of a foreign company through which that company carries on a business activity in Serbia. A branch is not considered an independent legal entity and acts on behalf and for the account of the company as well as participates in transactions under the companys registered name. Person registered as a legal representative of a branch is considered a representative of the whole company. Domestic and foreign companies may establish one or more branches as their organizational parts. Subsidiary The Company Law in force is in accordance with the European Unions legislation and company types in Serbia are similar to those in developed economies explicitly General Partnership (Serbian abb. O.D.), Limited Partnership (K.D.), Limited Liability Company (D.O.O) and Joint-stock company (A.D.). Business can be also registered as entrepreneur (PR). Moreover, one or more companies or entrepreneurs can found a Business Association (P.U) to achieve common goals but cannot conduct business for profit nor change its legal form into a company. In General Partnership two or more partners may contribute in money or in kind (no minimum equity requirement), including past or future labor and services. All partners bear the unlimited liability for the obligations of the general partnership.

A Limited Partnership is a company established for performing business activities within the framework of a mutual firm. In this form of a company, a general partner is jointly and severally liable for the obligations of a partnership, while a limited partner bears the risks and obligations only to the extent of his or her investment. A general partner manages the business and represents the company while limited partners are not allowed to manage business and to represent the company. The law doesnt stipulate minimum equity requirement. The most common and efficient form of business for international investors operating in Serbia is usually Limited Liability Company, due to a rather simple formation process and only EUR 1 required minimum capital. Shareholders can be legal entities and/or natural persons. A member's contribution to a LLC may be made in money or in kind including past, but not future labor or services. The shares are freely transferable between the partners. A share may be transferred to a third party, in which case other members of the company and the company have preemptive rights. The members of the company have pre-emption rights of shares which are the subject of transfer to a third party, except if specifically excluded by the law or memorandum of association. Management of a business organization can be arranged as a one-tire (shareholders and one or more directors) and or two-tire system (shareholders, Supervisory Board and one or more directors).

As a part of matchmaking services we promote B2B relationships and enable companies and/or individuals to sell their business, look for joint ventures, buy running business, form equity partnership, etc. When needed, we assist foreign investors in the process of obtaining permission from Commission for Protection of Competition of the Republic of Serbia. For someone that needs immediate presence on the market Shelf company can be offered as a solution.

Joint Stock Company (minimum capital required is RSD 3 million - around EUR 26,500), is also widespread legal form but is designated for undertaking business at a larger scale, therefore the needed documentation is more complex. It is founded by one or more legal entities and/or natural persons. A shareholder's contribution can be made in money or in kind, but not in labor or services. Management bodies can be arranged as a one-tire (shareholders and one or more Managing Directors, i.e. Board of Directors) and or two-tire system (shareholders, Supervisory Board and one or more Executive Directors, i.e. Executive Board). The Articles of association determine the type of Joint Stock Company. Regulated Sectors/Special Permits National Bank of Serbia (NBS) is in charge of granting and revoking operating licenses as well as supervising operations of banks, insurance companies, voluntary pension fund management companies and financial leasing companies. Banks must operate in the form of a joint stock company with minimum monetary capital requirement of EUR 10,000,000 and the founder can be domestic as well as foreign legal entity or physical person. Insurance companies must also operate in the form of a joint stock company founded by domestic or foreign legal entity/physical person. Minimum capital requirements range from EUR 2-4 million, for companies providing life insurance, to EUR 1-4.5 million for those offering other forms of insurance and EUR 4.5 million for those providing re-insurance. Voluntary Pension Fund Management Company is required to operate in the form of a closed joint stock company. Minimum paid-in monetary capital is EUR 1 million and the company has to have employed at least one licensed 5

portfolio manager. The founder can be domestic as well as foreign legal entity or physical person but more than 50% of the company must be owned by a shareholder(s) engaged in bank, insurance company or pension fund. Securities Commission of the Republic of Serbia is in charge of granting and revoking operating licenses as well as supervising operations of investment fund management companies and securities broker-dealer companies. Foreign investment funds management companies and foreign investment funds wish to operate in Serbia must register in accordance with the local regulation. Investment Funds Management Companies has to be registered as closed joint stock company. Minimum paid-in monetary capital is EUR 200,000 and the company has to have employed at least one licensed portfolio manager. For Securities Broker-Dealer Companies minimum capital requirements range from EUR 125,000-730,000 depending on type of services providing and has to be registered as closed joint stock company. The company also has to have employee(s) with suitable licenses in addition to certain requirements regarding organizational and technical requisites. Registration Procedure After completion of certain necessary actions in the preregistration phase (for example, notarization of documents) it takes just couple of working days to register a Company before the Serbian Business Registers Agency (SBRA), once the documentation is completed and submitted. The Agency is headquartered in capital Belgrade with 13 branch offices throughout Serbia. Within the statutory deadline of 5 days, SBRA will issue a decision on the registration of a company, along We assist international with the registration and tax identification number (PIB), certificate on the companies in finding registration with the Fund for Pension and Disability Insurance, and business opportunities in certificate and registration number with Republic Health Insurance Fund. Serbia and provide all the relevant information and These are the administrative fees you may expect when founding a guidance required to company in Serbia: establish a business and /or 1. foundation of a company app. EUR 55 at the SBRA; find adequate partners. 2. translation of the documents by sworn-to-court interpreter - app. EUR 80; 3. notarization of Power of Attorney at Court - app. EUR 20; 4. notarization of Incorporation Act of the company- app. EUR 50; 5. notarization of OP form (representative(s) signature(s)) at Court - app. EUR 15; 6. sworn-to-court interpreter engagement for notarization of the documents at Court - app. EUR 70; 7. making of a seal and stamp - app. EUR 40.

Labor Market and Employment Issues

A wide availability with a unique combination of high quality and low costs makes Serbian workforce one of the key factors in reaching a strong business performance. Number of Foreign Languages Learned
Romania Serbia 1,5 2

Educational centers in Serbia boast a well educated, Bulgaria 1,3 fast learning, multilingual and IT-literate labor force. Slovakia 1,2 The labor supply in Serbia annually increases by Croatia 1,2 approximately 35,000 universities and colleges graduates, 1,000 Masters of Science, 400 PhDs and 75,000 high school graduates which are sufficient to meet the growing demand of international companies. Of the total number of graduates, technical universities account for approximately 30%. With an estimated 49% of the working population speaking English, Serbia is ranked 1st in the SEE region. 6

Management education has also been improved by the introduction of joint graduate and post-graduate courses organized by local universities and renowned Western business schools. In addition, there are also a significant number of Serbian experts, returning to the country after gaining top-quality expertise in international companies around the globe. The labor market in Serbia has become truly vibrant as rising number of international investors have opened their businesses in the country. Nevertheless, the percentage of employees actively seeking a job change is 28%, which is lower than the most regional peers surveyed by GfK. Combined with a high unemployment rate (23.1% in Oct 2012) this leads to low attrition rate and higher professional loyalty. In Serbia, current gross minimal salary is around EUR 300, average gross blue collar salary EUR 412.5 and average gross white collar salary EUR 907.5 per month. Average Gross Monthly Salary (EUR)
Serbia Bosnia&Herz. Hungary Slovakia Poland Czech Republic Croatia 512 649 763 790 822 993 1043 25-29 30-34 35-39 40-44 45-49 50-54 13,29%

Registered Unemployed by Age

12,46% 12,03% 11,63% 11,85% 11,79%

Non-Serbian Citizens Working in Serbia Citizens of the EU member countries, EU membership candidate countries and a number of other countries such as Argentina, Australia, Canada, Israel, Japan, Mexico, New Zealand, the Russian Federation, Switzerland, Turkey, Ukraine, the United Kingdom and USA may travel and stay in Serbia for up to 90 days without a visa. Residents of other countries traveling to Serbia for business purposes or permanent employment may obtain a business visa which is valid for up to 1 year from a Serbian embassy abroad. To start employment in Serbia, a foreigner must be granted the approval for temporary residence as well as the approval for employment. Temporary residence can also be obtained on the basis of ownership over residential or business structure, professional specialization, training, engagement at NGOs, private visits, as well as to accredited journalists, officers of international institutions and university professors. Temporary residence may be approved for a period of up to one year and may be extended multiple times for the same duration. Business Permits are issued to company founders, directors of companies with foreign shareholders, directors of representative offices, directors of banks, bank representative offices, insurance companies, and their representative offices. Work Permits are issued to all non-Serbian citizens looking to establish employment. A work permit is issued for a period of at least 3 months, but not more than 12 months. It always has the same validity period as the temporary residence permit. It can be renewed without any obstacles.

Office Space Market

Belgrade Office Stock (sq m GLA) Investors can rent or buy office space in all major cities in Serbia. According to CB Richard Ellis, speculative stock of modern Class A and Class B office buildings in Belgrade at the end of Q3 2012 equaled app. 721,000 sq m of GLA. Rental levels remained stable, during entire 2012. Due to the completion of owner occupied buildings, vacancy rate has slightly increased, standing at 15.1% with a vacancy rate of roughly 22%.
Average Production Hall Cost
Building 400 EUR/m2 5 EUR/m2 0.05 EUR/kWh 0.42 EUR/m3 0.2 EUR/m3

Utility Costs According to Eurostat, the costs of operating in Serbia are among the lowest in Europe. The prices of electricity, gas, and other fuels, postal services, landline telephony, fax service and maintenance of motor vehicles are the lowest among 37 European countries.

Renting

Average Utilities Cost

Electricity Gas Water

The costs of telecom services, namely postal services, telecom equipment and phone charges are at the very bottom of the list, by far lower than in almost all European countries, or only 39% of the European average.

Prices of electrical energy for industrial users (Euro Cents/kwh)

2,23 2,65 2,17 2,36 3,81 11,61 3,71 5,86 3,42

1,68 1,43 0,82 4,57 6,39 8,50

9,32

9,29

10,22

9,05

9,21

12,10

12,76

Serbia

Bulgaria

Romania

Croatia

Poland Czech Rep. Austria

Without Taxes Taxes and VAT

Slovakia Germany

Italy

Hungary

Source: Eurostat; Based on annual consumption between 500-2,000 MWh, for Serbia 2,000 MWh

Taxation in Serbia
One of the key attractions of Serbian market is without doubt favorable and business-friendly tax regime. Taxes were not increased until 2013, even though public revenues declined, while real wages and contribution relating to salaries were reduced. Corporate profit tax, which is paid at a uniform rate of 15%, is still among the lowest in Europe, while Value Added Tax is among the most competitive in Central and Eastern Europe. To avoid unnecessary tax burdens, at the moment Serbia has signed Double Taxation Treaties with 53 countries. No matter what type of

Corporate Tax
Tax year is the calendar year but may be shorter than 12 months where activities start or terminate during a calendar year or there is a change in the status of the entity.

business you want to establish in Serbia, we have specialists in our team that will provide tailored corporate structures designed for tax minimization.

Corporate Tax Rates

10%
Bulgaria

15%
Serbia

16%
Romania

19%
Czech Republic

19%
Hungary

19%
Poland

20%
Croatia

23%
Slovakia

A legal entity is considered resident if it is incorporated in Serbia or managed or controlled from Serbia. Resident entities are taxed on their worldwide income; non-residents are taxed only on income generated in Serbia. The taxable base is calculated in the tax balance sheet, based on the profit and loss account adjusted for tax purposes. Taxable income includes both business income and capital gains. Tax filling in Serbia is based on self-assessment. Advance corporate tax is payable in monthly installments. A tax return and tax balance must be filed within 180 days after the end of the tax period for which the tax return is filed or 15 days from the deadline for submission of financial statements in case of a change of status, bankruptcy or liquidation. Payments of dividends, interests, royalties, income from the lease of property and payments made for services provided by entities resident in preferential tax jurisdictions are subject to 25% withholding tax. Technical services fees and branch remittance tax are not subject to withholding tax. Capital gains Capital gains generated by the sale or transfer of real estate, rights related to industrial property, as well as shares, stocks, securities, and certain bonds are subject to a 15% tax for residents (included in the annual income tax return) and 20% for non-residents (based on the tax assessment) unless the rate is reduced under a tax treaty. Taxation of Dividends Dividends paid by a Serbian resident company to another Serbian company are exempt from corporate income tax. Dividends received by a Serbian resident company holding at least 10% of the shares in a non-resident representative office are eligible for a credit for foreign tax paid on the dividends. Tax Rate Recurrence Possible Incentive
10 year tax holiday (investments in fixed assets over EUR 9 million and minimum 200 new jobs) & 20% or 40% of investment value as tax credit

Corporate Profit Tax

15%

yearly

Withholding Tax (for dividends, royalties, interest income, lease payments for movable or immovable property paid to a non-resident)

20%

yearly

lower rate according to Double Taxation Agreement

Anti-Avoidance Rules Transfer pricing transactions between associated entities must be on arms length terms. Under the thin capitalization rules, interest and related expenses are deductible on loans that do not exceed taxpayers equity 4 times for companies and 10 times for banks. In addition, under the transfer pricing rules a taxpayer must demonstrate that interest that is deductible under the thin capitalization rules is at an arms length level. Otherwise, an adjustment of taxable income may be required. Companies are considered related if one company has the ability to control or influence the business decisions of the other company or if a company holds at least 25% of the shares or votes in the governing body of the other company.

Additional Information Salary tax is paid under the PAYE system, whereby tax is deducted at source by the employer. The Employer makes social security contributions on an employees salary at the following rates. Social Security Contributions
Pension and disability insurance Health insurance Unemployment insurance

Rate
11% 6.15% 0.75%

Recurrence
monthly monthly monthly

Possible Incentive
3 - year holiday for hiring apprentices 2 - year holiday for hiring unemployed workers 3 - year holiday for hiring apprentices 2 - year holiday for hiring unemployed workers 3 - year holiday for hiring apprentices 2 - year holiday for hiring unemployed workers

Resident company may elect for group status and file a consolidated return. Companies are considered a group where parent company owns at least 75% of the shares or stocks of another company. The parent company file a consolidated tax return in which gains and losses of group companies are offset and each company pays its share of the tax. Once initiated, tax consolidation must be applied for 5 years. Deductibility of marketing expenses is capped at 10% of gross revenue. Entertainment expenses are treated separately and are deductible up to the limit of 0.5% of gross revenues. Stamp duty is payable according to a tariff based on the value of the document. If there is no value, a flat rate applies. Real property tax is levied on immovable property located in Serbia at 0.4% rate of book value. For transfer of property (e.g. real property, intellectual property, etc.) a 2.5% tax rate applies.

Value Added Tax

Standard VAT Rates

20%
Serbia

20%
Bulgaria

20%
Slovakia

21%
Czech Republic

23%
Poland

24%
Romania

25%
Croatia

27%
Hungary

VAT is imposed on the provisions of goods and services. The standard rate in Serbia is 20% and lower rate of 8% is applied on basic food, daily newspapers, utilities, etc. The registration threshold for VAT purposes is an annual turnover of RSD 8 million. VAT taxpayers with taxable income above RSD 50 mil are required to file monthly VAT returns within 15 days after the end of the tax period and pay the difference between the amount specified in the tax return and the input VAT incurred. VAT taxpayers with taxable income below RSD 50 mil must file quarterly VAT returns within 20 days after the end of the tax period. Refund period is 45 days (for major exporters 15 days). Non-residents are not allowed to deduct input VAT through fiscal representatives.

Personal Taxation
Serbian residents are taxed on their worldwide income; non-residents are taxed only on income generated in Serbia. For income tax purposes, an individual is considered resident if he/she has a residence or center of business or stays in Serbia for at least 183 days in the total during the tax year. The principal taxable forms of income are employment income (12%), business income (10%), royalties and rent, (20%), capital gains (15%). Residents receiving income of 3 or more times the annual average earnings in the tax year are subject to annual income tax under the worldwide system. 10

Salary Tax Rates

10%
Bulgaria

12%
Serbia

12%-40%
Croatia

15%
Czech Republic

16%
Hungary

16%
Romania

18%-32%
Poland

19%-25%
Slovakia

Total costs for employers stand at merely 50% of the level in EU countries from Eastern Europe. Social insurance charges and Salary Tax amount to roughly 65% of the net salary but the tax burden for employers can be reduced through a variety of financial and tax incentives available. Salary tax is paid under the PAYE system, whereby tax is deducted at source by the employer at following rates - 11% for pension and disability insurance, 6.15% for health insurance and 0.75% for unemployment insurance. Other income is self-assessed. Individuals must file a tax return or pay withholding tax depending on the type of income. Spouses are taxed separately. The Employer makes social security contributions on an employees salary as well as on behalf of its employees at the following rates: Pension and disability insurance 11%, Health insurance 6.15% and Unemployment insurance 0.75%. The rates dues by the self-employed are 22% for Pension and disability insurance, 12.3% for Health insurance and 1.5% for Unemployment insurance. Tax
Salary Tax

Rate
12% 10% - 3x-6x average salary 15% - over 6x average salary

Recurrence
monthly

Possible Incentive
3 - year holiday for hiring apprentices 2 - year holiday for hiring unemployed workers

Annual Income Tax

yearly

Other Taxes on Individuals Inheritance tax is levied on inheritances and gifts at progressive rate between 1.5% (for taxpayers in the second order of succession) and 2.5% (for taxpayers in the third and subsequent orders of succession). Transfer tax of 2.5% applies on transfer of immovable property (i.e. intellectual property, real property, etc). Property tax is levied on the occupation of real estate at progressive rates ranging from 0.4% to 2%. Double Taxation Relief If a taxpayer earns profit by conducting business in another country and tax was paid on that profit, one is entitled to a tax credit on its company profit tax account in Serbia amounting to the already paid tax. A taxpayer who earns revenue enjoys the same right and pays personal income tax in another country, provided there is a Double Taxation Treaty with that country. Double Taxation Agreements (DTA) Signed by Serbia
Albania Austria Azerbaijan Belgium Belorussia Bosnia & Herzegovina Bulgaria Canada* China Croatia Cyprus Czech Republic DPR Korea Denmark Egypt Estonia Finland France Ghana* Georgia* Germany Greece Guinea* Hungary India Indonesia* Italy Iran Ireland Kuwait Latvia Libya Lithuania Macedonia Malaysia Malta Moldova Montenegro Netherlands Norway Pakistan Philippines* Poland Qatar Romania Russia Slovakia Slovenia Spain Sri Lanka Sweden Switzerland Tunisia* Turkey Ukraine UAE* UK Zimbabwe*
*Signed, to be confirmed by Parliament

DTAs with Botswana, Vietnam, Zambia, Armenia, Jordan, South Africa and Morocco are initialled, while negotiations are under way with Luxembourg, North Korea, Myanmar Union, Nigeria and Syria.

11

Liberalized Trade
Local Market and External Trade
For its position on the geographic borderline between the East and West, Serbia is often referred to as a gateway of Europe. In addition, two very important European corridors, No. 7 River Danube and No. 10 the international highway and railroad, intersect on the Serbian territory providing excellent logistic connections with Western Europe and the Middle East.

South East Europe is the region with the highest growth rate in Europe, and among the fastest growing regions, globally. Internally, with 7.5 million people, Serbian market is the 2nd largest market in South East Europe. The average net monthly salary rose from merely 190 in 2004 to 413 in 2012. Coupled with rapid consumer loan expansion, this fueled a sharp increase in local demand that was particularly reflected in a double-digit surge in retail trade turnover on an annual basis and dozens of new stores across the country opened up by international retail chains. Export growth rates are one of the highest within the transition countries. Annual Export Growth Rates (y-o-y in EUR) 30.4% 2006 25.0% 2007 16.9% 2008 -16.5% 2009 18.8% 2010 14.1% 2011 4.7% 2012e

The external trade in 2012 noted the highest level with the countries Serbia had signed agreements on free trade. European Union member countries account for more than 50% of the total external trade (58.1%). Serbias second major partner refers to the CEFTA countries, since our gained surplus in external trade amounted to USD 1318.4 million, resulting mainly from the exports of agricultural products (cereals and produces thereof and various sorts of drinks), as well as exports of iron and steel. Regarding imports, items mainly related to hard coal, coke and briquettes, iron and steel, electricity, as well as fruit and vegetables. Serbias exports to CEFTA countries in 2012 amounted to USD 2861.0 million, while the imports were USD 1542.6 million. The export import ratio equaled 185.5 %. According to the divisions of the Standard International Trade Classification (SITC) the following items had the greatest exports share: cereals and produces thereof (USD 838 million), electrical machines and apparatus (USD 831 million), non-ferrous metals (USD 673 million), road vehicles (USD 605 million) and fruit and vegetables (USD 539 million). These five sections accounted for 30.7% of the overall exports.

12

Free Trade Agreements

Externally, Serbia can serve as a manufacturing hub for customs-free exports to a market of over 1 billion people. It includes the European Union, the United States of America, Russia, South East Europe, Belarus, Kazakhstan, Turkey and EFTA members (Norway, Switzerland, Iceland, and Liechtenstein). This customs-free regime covers most key industrial products, with only a few exceptions and annual quotas for a limited number of goods. Upon the completion of negotiations with Egypt, the territory with duty-free access for Serbia will be increased by additional 77 million consumers.

European Union Exports to the European Union market are free-of-customs according to the Stabilization and Association Agreement. For several food products (baby beef, sugar and wine) export quantities are limited by annual quotas. Imports from the EU are pursued based on the Interim Trade Agreement, as part of the Stabilization and Association Agreement, providing for progressive abolishment of import customs duties for industrial and certain agricultural products from the EU countries by 2014. United States of America Export to USA under Generalized System of Preferences (GSP) regime applies for approximately 4,650 products, including nearly all finished and semi-finished goods and selected agricultural and primary industrial products. Certain sensitive goods (e.g. most textile products, leather goods, and footwear) are not eligible for duty-free exports. The list of eligible goods is reviewed and adjusted twice per year, with input from U.S. industries. For the full list of goods eligible for GSP treatment log on to: www.ustr.gov Russian Federation This FTA makes Serbia particularly attractive to foreign investors in the manufacturing sector. The Agreement stipulates that goods produced in Serbia, which have at least 51% value added in the country, are considered to be of the Serbian origin and thus exported to Russia customs free (the only tariff charged is the customs record keeping tariff, amounting to 1%). The FORM A Certificate is required as a proof of goods origin. The list of products, excluded from the Free Trade Agreement, is revised annually. As of March 2012, the list of excluded products comprises 13

poultry and edible waste, some sorts of cheese, sugar, sparkling wine, ethyl-alcohol, tobacco, cotton yarn and fabrics, some types of compressors, tractors and new and used passenger cars. The FTA with Russian Federation in full can be found here . Belarus The Free Trade Agreement with Belarus envisages mutual abolishment of customs and non-customs duties in trade between the two countries. There are only a few exceptions to the Agreement, including sugar, alcohol, cigarettes, as well as used cars, buses, and tires. Kazakhstan This Free Trade Agreement was came into effect on January 1, 2011 and due to its positive effects Serbian goods attract more buyers not only from Kazakhstan, but also from the Russian Federation and Belarus, as well as potential investors who are interested in opening their production in Serbia. The FTA states that the parties will not charge customs duties, fees and charges with equivalent effect for products originating in one party and intended for the market of the other party. Exceptions were made for some products stated in the annexes and applicable rates are specified by national customs tariffs. For the rules of FTA to be applied, it is necessary to submit the original certificate determining the country of origin of the product (Form CT-2) to the Customs of the importing country. Central European Free Trade Agreement (CEFTA) The FTA between Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Moldova, Montenegro, Serbia and the United Nations Interim Administration Mission (UNMIK) in Kosovo has been in effect as of July 2007, providing companies in Serbia with an opportunity to reach the 29 million people market free-of-customs. In addition, the Agreement stipulates accumulation of products origin, meaning that products exported from Serbia are considered of the Serbian origin if integrated materials originate from any other CEFTA country, the European Union, Iceland, Norway, Switzerland (including Liechtenstein) or Turkey, provided that such products have undergone sufficient processing (if the value added there is greater than the value of the materials used in Serbia). For exports to the member countries of CEFTA, the EUR 1 Certificate is required as a proof of goods origin. Information about CEFTA Agreement can be found here . Turkey Industrial products originating in Serbia can be exported to Turkey without paying customs duties. Imports of industrial products into Serbia are generally customs-free, but for a large number of goods customs duties will be progressively abolished by the end of 2015. For trade in agricultural products customs duties remain in effect, with certain Most Favored Nation reductions for a number of products. EFTA Except for a very limited number of goods, including fish and other marine products industrial products exported from Serbia to EFTA member states (Switzerland, Norway, Iceland, and Liechtenstein) are exempted from paying 14
Turkey EFTA Total 75 13 1,083

Markets with Duty-Free Access for Serbia

Market European Union USA Russia, Belorussia & Kazakhstan South East Europe Inhabitants (in mil) 494 303 Trade Regime Preferential Trade Regime Generalized System of Preferences (GSP) Free Trade Agreement Central European Free Trade Agreement (CEFTA) Free Trade Agreement Free Trade Agreement

169

29

Outside the Commonwealth of Independent States, Serbia is the only country with FTA with Russia.

customs duties. Customs duties for imports of industrial products originating in EFTA states will be gradually abolished by 2014. Trade in agricultural products is regulated by separate agreements with each of EFTA members, providing for mutual concessions for specified products. The Agreement with EFTA member countries can be found here.

World Trade Organization (WTO)

WTO compliance negotiations are in the final stage. In the process of accession to the WTO Serbia finalized bilateral protocols with 13 WTO members by the end of 2012. In January 2013, the bilateral protocols on trade liberalization of goods and services with Mexico and the Republic of Panama were signed and negotiations with the Dominican Republic completed. Negotiations with India, Ukraine and Brazil are ongoing and the goal is to achieve the accession of the Republic of Serbia to the WTO in 2013.

Investment Infrastructure
As a logistics base, Serbia is a perfect place for a company to locate its operations if wanting to closely and most efficiently serve its EU, SEE or Middle Eastern customers. It borders the EU, at the Hungarian, Romanian and Bulgarian state line. At the same time, businesses can enjoy all the benefits of working outside the EU, while being able to provide services and transport goods in projected and flexible time frames. In summary, Serbia boasts a great potential to grow into a logistics hub of the South East Europe.

Transportation Infrastructure
Roads
Transportation
40,485 km By using developed road connections, a shipment from Length of road network 3,809 km Serbia can reach even remotest parts of Europe, in less Length of railway network 959 km than 72 hours. Products can also move rapidly cross- Length of navigable routes 11 country: the road network of the Republic of Serbia is Number of river ports 2 40,845 km (25,380 miles) long, out of which 415.7 km Number of intern. airports (257 miles) of highways with toll collection, 246.5 km (153 miles) of semi-highways with toll collection, 5,525 km (3,433 miles) of arterial roads, 11,540 km (7,171 miles) of regional roads, and 23,780 km (14,776 miles) of local roads.

In order to further upgrade the country's road network, Serbian government has adopted the National Plan for Road and Railroad Infrastructure Development. By the end of 2012, a total of EUR 2.9 billion was invested in the construction of the 6 major highways. Railroad Transport of goods via railroad is very cost effective and through Pan European Corridors X and VII, Serbia offers an access to all European destinations. As in many countries, the railway system in Serbia suffered due to lack of investments in previous years, but serious efforts have been made by the Government of Serbia in order to restructure and modernize railway network in Serbia. Serbian Railways has signed contracts with 43 international forwarding companies and due to that, "shuttle" container trains started using Serbian railways for pan-European transport. Also, the maximum spindle capacity of the Serbian railways system is 22.5 t. Finally, the priority for the next period is the development of multimodal transportation (transition from road to railway and river transportation).

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Air Duration of Flights

Up to 1 hour
Bucharest, Istanbul, Ljubljana, Rome, Vienna, Zurich, Sarajevo

Up to 2 hours
Berlin, Dsseldorf, Frankfurt, Kiev, Milan, Munich, Paris, Prague

Up to 3 hours
London, Moscow, Stockholm, Amsterdam

More than 3 hours

New York, Toronto

Air transportation is the fastest and the most convenient way of transportation. Serbia can be reached by air using one of two available international airports in Serbia - Nikola Tesla Airport and Nis International Airport. An airport in Vrsac is currently being used only for domestic non-commercial flights, training and leisure aviation, while it is expected soon to be granted an international certification. Transportation by air to and from Belgrade is possible to almost every destination in the world, either directly or by layover. Belgrades Nikola Tesla international airport is the only airport in the Balkans registering a constant increase in the number of passengers. Despite the ongoing crisis, in 2011 the business performance of the airport was strong with a 14% increase in the number of travelers compared to 2010 and figures remained stable in 2012. Moreover, last year the number of passengers increased by 8% compared to 2011.

Nikola Tesla Airport Traffic Figures

50000 40000 30000 20000 10000 0 4000000 3000000 2000000 1000000 0

eDreams, one of the largest online travel agencies in Europe, has published the ranking of the "Best Airports in the World 2012," compiled from thousands of customer reviews gathered over the past year. Belgrades Nikola Tesla international airport in the overall ranking took 7th position.
Aircraft Movements (Take-Off / Landing) Number of passengers

River Serbia offers an outstanding potential when river transportation is concerned. A highly cost effective way of transport can be pursued on three rivers giving a total of 959 km of safe navigable routes. 588 km of the International River Danube, represents the most reliable navigable route that can be used for transportation throughout the year. In addition, artificial canals RhineMain-Danube, an international canal that allows barge traffic between the North Sea and the Black Sea, and Danube-Tisa-Danube create a network of routes providing access to all Danube basin countries. The Sava River links the following countries in the region: Slovenia, Croatia, Bosnia & Herzegovina and Serbia, and it is in the process of gaining the status of International Navigable Route. Danube 588 km of the International River Danube, represents the 16

most dependable navigable route throughout the year. The Rhine-Main-Danube canal, completed in 1992, allows barge traffic between the North Sea and the Black Sea. Tisa 164 km of inter-state navigable passage on the river Tisa, with the network of the domestic channel Danube - Tisa Danube totaling 600 km, has the potential to become an International Navigable Route of satisfactory level for use by all Danube basin countries. Sava 207 km of the river Sava provide excellent potential for transportation of goods in the Western Balkans. The river Sava links the following countries in the region: Slovenia, Croatia, Bosnia & Herzegovina (The Republic of Srpska) and Serbia. It is in the process of gaining the status of International Navigable Route. Ports There are seven ports on the River Danube: Luka Apatin, Luka Baka Palanka, Luka Novi Sad, Luka Beograd, Luka Panevo, Luka Smederevo i Luka Prahovo. They can all be used for logistic purposes i.e. loading and unloading the cargo.

Free Trade Zones

At present, there are Free Zones operating in the following cities: Subotica, Novi Sad, Zrenjanin, Sabac, Kragujevac, Uzice, Nis, Smederevo, Krusevac, Svilajnac and Pirot. Foreign companies can establish a privately-owned Free Zone based on the project approved by the government. Earnings and revenues created within a Zone can be transferred to any country, including Serbia, freely without any prior approval, and are not subject to foreign trade regime.

Global Free Zones of the Future 2012/13

The ranking was carried out by fDi Intelligence, a division of The Financial Times Ltd, the largest FDI centre of excellence globally, and it was published in the FDI Magazine Financial Times. Among more than 600 zones from more than 100 countries participating in the assessment two Serbian Free Zones entered the final ranking: Free Zone Pirot was listed as No. 41 and industrial zone Jugoistok-Eka, which is part of Free Zone Zrenjanin, No. 48 in the list of top global zones for FDI. Over 10.000 free zones operate in the world.

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Government Support for Business

Investment Incentives Outline

Financial Incentives State Grants for Greenfield and Brownfield Projects The National Employment Service Grants Tax Incentives Corporate Income Tax Holiday Corporate Income Tax Credits Carrying Forward of Losses Avoiding Double Taxation Salary Tax Social Insurance Charges Exemptions Annual Income Tax Deductions Value Added Tax Exemptions in Free Zones Other Incentives Customs-Free Imports of Raw Materials and Semi Finished Goods Customs-Free Imports of Machinery and Equipment Local Incentives

Investment Incentives by Regions

Source: SIEPA

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Financial Incentives
State Grants for Greenfield and Brownfield Projects Costs of investment projects in Serbia can be reduced as a result of highly competitive and diverse investment incentives. Based on the Serbian Government Decree and provided by the budget of the Republic of Serbia state grants are offered for Greenfield and Brownfield projects in all industries except primary agriculture, hospitality industry, retail and the production of synthetic fibers and coal. Up till now, foreign and local companies have been approved EUR 252.3 millions of nonrefundable funds for the projects exceeding EUR 1.4 billion providing for 44,046 new jobs in Serbia. This incentive scheme has already benefited a large number of world-class companies, namely Michelin, Yura Corporation, Golden Lady, Gorenje, Henkel, Kronospan, Leoni, Pompea and many more. Average subsidy per job created is EUR 5,727.

STANDARD-SCALE PROJECTS
Manufacturing Internationally Marketable Services Tourism

Eligible Investments

Investments in underdeveloped th regions (4 group) and devastated regions EUR 4,000 10,000 / per job created EUR 0.5 mil 50

Investments st nd in 1 , 2 and rd 3 group of local administrations

Investments in all regions of the Republic of Serbia

Investments in strategic projects in all regions of the Republic of Serbia EUR 4,000 10,000 / per job created EUR 5 mil 50

Grant (EUR)

Amount

EUR 4,000 10,000 / per job created EUR 1 mil 50

EUR 4,000 10,000 / per job created EUR 0.5 mil 10

Investment Amount Minimum Number of New Jobs Created Eligible Investments Grant Amount (EUR) The Minimum Investment Amount The Minimum Number of New Jobs Created

LARGE-SCALE PROJECTS
Investment of Special Importance
Up to 17% of the total investment EUR 200 mil

Large Investment Projects

Up to 17% of the total investment EUR 100 mil or greater 300 Up to 20% of the total investment between EUR 50 mil and EUR 100 mil 300

Mid-Sized Investment Projects

Up to 10% of the total investment EUR 50 mil

1,000

150

The National Employment Service Grants In addition to funds aimed at attracting Greenfield and Brownfield foreign investments, the National Employment Service is also providing several programs regarding subventions for employers. Program1
Employment Subsidies Program Apprentice Program Re-Training Program

Grant Amount per Employee

EUR 850-1,700 EUR 170-210 EUR 850

Grants awarded by the National Employment Service are revised annually and the available funds depend of the budget for every particular year

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Tax Incentives
Highly competitive tax regime accompanied with a number of related incentives makes Serbia highly conducive to doing business. Corporate Income Tax Holiday Companies are exempt from Corporate Income Tax for a period of 10 years starting from the first year in which they report taxable profit if they invest in fixed assets an amount exceeding approximately EUR 9 million, and throughout the investment period they employ at least 200 additional employees. Corporate Income Tax Credits The amount of tax payable can be reduced by 20% of the amount invested in fixed assets for the respective tax period. This reduction cannot exceed 33% of the total tax liability for a single year. If not used entirely in the course of one year, this tax credit can be carried forward for a maximum period of 10 years. For small companies, tax credit of 40% is granted for fixed assets investments in the current year and may not exceed 70% of the tax due. Carrying Forward of Losses Net operating losses stated in the tax return can be carried forward for 5 years. Capital losses may be carried forward and offset against future capital gains over a period up to 5 years. The carryback of losses is not permitted. Avoiding Double Taxation If a taxpayer already paid tax on the profit generated abroad, he is entitled to a Corporate Income Tax credit in Serbia to the already paid amount. The same right is enjoyed by a taxpayer who earns revenue and pays Personal Income Tax in another country, provided there is a Double Taxation Treaty with that country. Salary Tax Social Insurance Charges Exemptions A company who hires new personnel from certain categories of workers on a permanent basis is exempt from paying salary tax over the period of 3 or 2 years. The employer is exempt of paying SIC for a period of 3 years for apprentices aged fewer than 30 registered as unemployed by the National Employment Service and for disabled persons. In case of employees under 30 registered as unemployed for no less than 3 months, those aged 50 or older registered as unemployed for no less than 6 months and received unemployment compensations as well as all employees aged between 45-50 the release period would last 2 years. Annual Income Tax Deductions The annual income tax due by Serbian residents on net worldwide income in excess of a prescribed threshold (3 average annual salaries) is levied at progressive rates ranging from 10% to 15%. The annual income is taxed if exceeding the amount of threefold the average annual salary in Serbia. The tax rate is 10% for the annual income amounted in the range between 3 and 6 times average annual salary in Serbia, and 15% for the part of the annual income exceeding 6 times average annual salary in Serbia. The taxable income is further reduced by 40% of an average annual salary for the taxpayer and by 15% of an average annual salary for each dependent member of the family. The total amount of deductions cannot exceed 50% of the taxable income. Value Added Tax Exemptions in Free Zones Income generated through commercial activities in the Free Zones in Serbia is exempted from Value Added Tax. At present, there are 11 Free Zones operating in the following cities: Subotica, Novi Sad, Zrenjanin, Sabac, Kragujevac, Uzice, Nis, Smederevo, Krusevac, Svilajnac and Pirot. Foreign companies can establish a privately-owned Free Zone based on the project approved by the government. Earnings and revenues created within a Zone can be transferred to any country, including Serbia, freely without any prior approval, and are not subject to foreign trade regime.

Other Incentives
Customs-Free Imports of Raw Materials and Semi Finished Goods Foreign investors in Serbia can enjoy the benefit of customs free import of raw material and semi finished goods for export oriented production. This benefit can either be achieved by operating in one of the free zones in Serbia or by 20

a permit from custom office for outward processing production. In both cases finished products must be 100% designated for export. Customs-Free Imports of Machinery and Equipment Foreign investors are exempt from paying customs duty on imported equipment and machinery which represents the share of a foreign investor in a capital of a company in Serbia. Local Incentives A wide array of incentives is also available at the local level, varying in scope and size from one city to another. The major ones comprise the following:

City construction land lease fee exemptions or deductions, including the option of paying in installments, with the prior consent of the Serbian Government; City construction land development fee relief such as fee exemptions or discounts for one-off payments. Other local fees exemptions or deductions (e.g. In the Serbian Province of Vojvodina, investors are awarded financial grants for new employment with the possibility of receiving additional grants for employing person older than 50 years old).
Rate Recurrence yearly Possible Incentive 10 year holiday (investments over 9 million euro and 200 new jobs) or 20% or 40% of investment value as tax credit

Investment Incentives Outline

Corporate Profit Tax Withholding Tax (for dividend, shares in profits, royalties, interest income, capital gains, lease payments for real estate and other assets) VAT Property Tax Absolute Rights Transfer Tax

15%

20%

yearly

lower rate of 10% or 5% according to Double Taxation Agreement

20% - standard 8% - lower rate up to 0.4% 2.5% - other property except stocks and bonds 12% 10% - for annual salaries between 3x-6x average 15% - over 6x average salary 11%

monthly yearly at purchase of property

import VAT return import VAT exempt in Free trade zones varies by municipality

Salary Tax

monthly

3 - year holiday for hiring apprentices 2 - year holiday for hiring unemployed workers

Annual Income Tax

yearly 3 - year holiday for hiring apprentices 2 - year holiday for hiring unemployed workers 3 - year holiday for hiring apprentices 2 - year holiday for hiring unemployed workers 3 - year holiday for hiring apprentices 2 - year holiday for hiring unemployed workers

Pension and disability insurance

monthly

Health insurance

6.15%

monthly

Unemployment insurance

0.75%

monthly

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Appendix I European Cities and Regions of the Future 2012/13

Latest ranking by the fDi Magazine, part of the Financial Times Group specialized in the FDI issues was conducted in a more competitive climate than ever. The ranking summed up 253 European cities evaluating their perspectives in FDI development revealing the cities and regions that stand the best chance of capturing future investment and expansion projects by multinational companies. Cities in Eastern Europe lead the way in the cost-effectiveness category, where foreign investors can avail of inexpensive labour costs, cheap utilities and affordable property. Among Top 10 Regions by Cost Effectiveness, City of Indjija is ranked as the second best European city/region of the future while Sremska Mitrovica is 3rd and region of Vojvodina 4th in addition to Vranje 5th and Zajecar 7th among micro cities as well as capital Belgrade which is 7/10 among major cities compared by cost effectiveness. Moreover, when evaluating FDI Strategy in Southern Europe, city of Subotica is ranked 10th.

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Appendix II Doing Business in Serbia in 2013, World Bank Report

Doing Business 2013 is the 10th in a series of annual reports investigating the regulations that enhance business activity and those that constrain it across 185 economies and over time. Regulations affecting 11 areas of a business cycle are covered: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and employing workers. The indicators are used to analyze economic outcomes and identify what reforms of business regulation have worked, where and why. Serbia made it to the list of ten economies improving the most, up by 9 places from last years 95th position.

Starting a business: Serbia made starting a business easier by eliminating the paid-in minimum capital requirement; Enforcing contracts: Serbia made enforcing contracts easier by introducing a private bailiff system, providing competitive options for enforcing a binding decision. The winning party in a commercial case may now choose between private and court bailiff to carry out enforcement proceedings; Resolving insolvency: Serbia strengthened its insolvency process by introducing private bailiff, reducing the starting prices for the sale of assets, prohibiting appeals, expediting service of process and adopting an electronic registry for injunctions to make public all prohibitions on the disposal or pledge of movable or immovable property.

For years, our Group is one of the local partners of the World Bank and our experts have been actively participating in the Doing Business project.

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Serbia Key Indicators

Official Name Form of State Political Structure Area Population Republic of Serbia Democratic Republic President Unicameral assembly with 250 seats 88.407 km2 7.2 million South East Europe, central part of the Balkan Peninsula, at the intersection of Pan European Corridors No. 10 (road and railway corridor connecting North and Southeastern Europe) and No. 7 (inland waterway of the Danube River reaching the Black Sea area) EBulgaria, NERomania, NHungary, WCroatia and Bosnia-Herzegovina, SWMontenegro, SAlbania and FYR Macedonia Central European Time (GMT + 01:00) Serbian Christian Orthodox (main), Roman Catholic, Islamic, Jewish, Protestant Belgrade (1,639,121), Novi Sad (335,701), Nis (257,867), Kragujevac (177,468) .rs +381 Serbian Dinar (RSD) Full Member IMF (2001), World Bank (2001), EBRD (2001), EIB (2001), Council of Europe (2003), Partnership for Peace (2006); Membership Negotiations WTO Final Stage; EU Candidacy; OECD Observer S&P BB/B Credit Rating Fitch BB/B Country Risk Premium EMBI (in bp) 574.8 2005 GDP growth rate (%) GDP per capita Unemployment rate ILO (%) FDI (EUR mil) CPI (%) Export (EUR mil) Import (EUR mil) 5.4 2,729 20.8 1,303 17.7 3,608 8,439 2006 3.6 3,144 20.9 4,234 6.6 5,102 10,463 2007 5.4 3,857 18.1 2,848 11.0 6,432 13,951 2008 3.8 4,445 14.0 2,434 8.6 7,429 16,478 2009 -3.5 3,955 16.6 1,810 6.6 5,961 11,504 2010 1.0 3,841 19.2 1,139 10.3 7,393 12,622 2011 1.6 4,336 23.7 2,236 7.0 8,441 14,250 2012e -1.7 4,134 23.9 1,967 12.2 8,837 14,782

Geographic Position

Borders

Time Zone Official Language Religion Major Cities (No. of Inhabitants) Internet Domain Dial Code Currency

Institutions/ Integration Status

Market-Based Indicators

Source: Statistical Office of the Republic of Serbia, Ministry of Finance of the Republic of Serbia, National Bank of Serbia

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Contact
Our business group supports foreign companies seeking to relocate facilities or expand in Serbia by providing true one-stop-shop service in pre-investment analysis, during the transaction as well as project aftercare and daily business activities. If you need any further information and experienced and trustworthy local partner, do not hesitate to contact us.

INTERNATIONAL CENTER FOR FINANCIAL MARKET DEVELOPMENT 12 Nebojsina St. 11000 Belgrade Republic of Serbia Tel: +381 (11) 3085-780 Fax: +381 (11) 3085-782 http://www.mcentar.rs/eng office@mcentar.rs

SECURITIES BROKER-DEALER INTERCITY BROKER JSC 52 Maksima Gorkog St. 11000 Belgrade Republic of Serbia Tel: +381 (11) 3083-140 Fax: +381 (11) 3083-150 http://www.icbbg.rs/eng office@icbbg.rs

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DISCLAIMER: The information contained in this publication were obtained from various sources believed to be reliable, but have not been independently verified by our Research department. We do not warrant the completeness or accuracy of such information and do not accept any liability with respect to the accuracy or completeness of such information. This publication is a brief summary and does not purport to contain all available information on the subjects covered. Further information is available on request. Any loss or other consequence arising from the use of the material contained in this publication shall be the sole and exclusive responsibility of the investor and we accept no liability for any such loss or consequence.

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