LAW FIRM

Attorneys at Law

Tax Advisers

European Patent & Trademark Attorneys LAW FIRM

FINLANDIA

North Helsinki NORWEGIA Atlantic Oslo SWEDEN Tallin Stockholm Baltic Ocean Sea North LATVIA Sea Edinburgh Belfast Copenhagen Newcastle

Dublin IRELAND Gdansk Liverpool UNITED Varszaw Berlin RUSSIA KINGDOM Amsterdam POLAND London NETH. GERMANY Brussels Showing a way English Chanel BEL. Bonn Kraków Frankfurt Le Havre LUX. Prague Luxembourg for most significant business transactions, Paris CZECH REPUBLIC SLOVAK REPUBLIC Bratislava Strasbourg Munich Vienna most critical disputes Budapest FRANCE SWITZ. AUSTRIA LIECH. HUNGARY ROMANIA and challenging tax and legal issues. Geneva Bern Bay of SLOVENIA Zagreb VOJVODINA Bucharest Biscay Lyon Milan Venice CROATIA Bordeaux BOSNIA- Belgrade Black Genoa Adriatic HERZEGOVINA SERBIA Split YUGOSLAVIA BULGARIA Sea MONACO Sea Sarajevo Marseille KOSOVO Sofia Porto ITALY ANDORRA MONTENEGRO SPAIN MACEDONIA Corsica Rome PORTUGAL Barcelona Tiranë Madrid TURKEY Naples ALB. Lisbon Aegean Sardinia Tyrrhenian Valencia GREECE Sea Balearic Islands Sea Athens Sevilla Ionian Mediterranean Sea Palermo Sicily Sea Rhodes Gibralta MALTA Valletta Crete G We Service the Baltic Countries

Riga o ce Vilnius o ce o ce Valdemara Center 3rd oor, Vilnius Gates, 6th oor, Narva mnt 5, Kr. Valdemara street 21, LV-1010, A. Tumeno st. 4, LT-01109, 10117 Tallinn, Riga, Latvia Vilnius, Lithuania Estonia T: +371 67 24 00 90 T: +370 52 61 10 00 T: +372 61 91 000 F: +371 67 24 00 91 F: +370 52 61 11 00 F: +372 61 91 007 Profile by MARTIN DALE-HUBELL ®

CURRENT ROLE EXPERTISE AND EXPERIENCE MANAGEMENT STYLE FUTURE DIRECTION BIOGRAPHICAL AND PERSONALITY AND ADAPTABILITY Despite being less than 40 years’ Not surprisingly, given his Ernest & Young DATA old, Valters Gencs has had an background, tax law has played a major part in Regardless of being the founder of an 11- lawyer Mr Gencs has a clear vision of Date of Birth eventful and high-pro le career. Mr Gencs’ professional life. He was a founding practice, Mr Gencs is very much a ‘hands on’ his rm’s future strategy. “Our June 24, 1968, Bauska, Latvia After studying law at Latvia’s Law signatory of the Swedish Chamber of practitioner. Having built up his practice, he is rm will remain independent,” School in the early 1990s and for Commerce in Latvia, created in 1996, and sat on not someone who is willing to give up he says. “We are good at Education fee-earning to become a glori ed oce admin- working for ourselves – more an LLM in Chicago, he eectively the Foreign Investors Council in Latvia tax Law School of the University of Latvia, LL.B. than 70 per cent of our work founded and ran two successive committee for many years. During his career, he istrator because of the success of his practice. In (1993); Institute of International Aairs – legal practices. Between 1996 and has also scored several notable victories over fact, Mr Gencs comfortably walks the precarious comes from referrals. When we International Business Studies (1994); John 2000, he was a director of tax and the Latvian government in relation to tax law – line of rainmaker and doer. were part of Ernst & Young, it Marshall Law School, Chicago, IL, USA; legal services for Ernst & Young in ironic considering he once belonged to a meant other accountancy LL.M. (1995). Latvia. Then, as the associated government working group on tax, appointed Overseer not overzealous rms couldn’t instruct us. Now, accountancy-law rm business by the then Latvian Prime Minister Andris Škele. As a result, the rm’s clients can expect that Mr we do not have that problem.” Admitted model became less popular post Gencs will play a supervisory role on most 1993 – Republic of Latvia Sarbanes-Oxley, he founded a His rst major interaction with the Latvian matters that his rm is involved in. Typically, he We have the opportunity to new, independent, law rm, The government was as an advisor to the Foreign will put together the team of lawyers who will pitch for the type of work we Employment Law Firm of Valters Gencs in 2002. Investors’ Council (FICIL) in Latvia. This group act on a particular transaction, and also take want to do without any limita- Legal Counsel for Ministry of Foreign Aairs For Mr Gencs, the gamble of estab- was established in 1998 by several major overall responsibility for quality control. tions. of Latvia (1994); Head of Tax & Legal lishing an independent law rm regional international companies to campaign However, having recruited a talented team of department of Ernst & Young Latvia (1996 – Valters Gencs paid o almost the entire Ernst & for a more favourable regulatory regime for young lawyers, whose number includes several Of course, Mr Gencs is aware 2000); Founder, Gencs Valters Law Firm Young legal team from Latvia foreign investors in the country. As the FICIL’s former government lawyers and in-house that the region’s legal market Advocate (2000–). Chairman of the Norwegian joined his new rm. Head of Tax, Mr Gencs played a leading role in counsel, he does not insist on reviewing all work is developing rapidly. Several Chamber of Commerce in Latvia – 2008 to negotiating the reform of his country’s VAT carried out by his team before it is sent to of his rival rms have under- now. In many regards, Latvian lawyer The practical regime. While this reform was a necessary part clients. “We operate a ‘four eyes’ insurance policy gone domestic mergers in practitioner of the country’s preparation for EU accession, to guarantee the quality of our work,” he says. recent years, or have entered Practice Areas Valters Gencs is the archetypal Although he is the rm’s sole Mr Gencs can also make the unusual claim of “All work is reviewed by at least two people into exclusive referral arrange- Tax, Finance, M&A, Litigation, Intellectual modern Baltic lawyer – US educated, partner, Valters Gencs is very much being partially responsible for his government’s before it is sent to the client.” ments with rms operating in Property a practicing lawyer. Today, he subsequent budget de cit. While the introduc- other Baltic states. willing to take a commercial risk with estimates that he spends up to 70 tion of the new VAT regime went relatively Marketing mogul Languages per cent of his time on fee- smoothly, the government failed to accurately While he clearly enjoys practicing as a lawyer, Mr However, while he says he is English, Latvian, Russian his own rm, and eager to embrace earning, and has made a conscious predict the shortfall in revenue the changes Gencs does not give the impression of being happy to cooperate with other Western business methods. Having decision to ‘outsource’ as many of would produce. unduly academic in his approach to his work. In rms, Mr Gencs says his Committees, Memberships his rm’s administrative functions reality, this is not surprising, given his “multidis- strategy is to work with other Member of the Working Group on Tax Law established two successive law as possible. “I’m in court for three A supreme battle ciplinary background” and long-term exposure rms on a reciprocal rather appointed by the Latvian Prime Minister oces by the age of 34, his practice days next week,” he says, by way of More recently, Mr Gencs spent ve years to Anglo Saxon business methods. For clients, than an exclusive basis. “Our (1997 and 2002); Head of tax ad hoc group illustration. battling the Latvian State Revenue Service (SRS) this approach manifests itself in several ways: law rm works with many of the Foreign Investors Council in Latvia now boasts a client roster that rival on behalf of Coca-Cola. This was a test case to rstly, Mr Gencs is an exceptionally proli c other rms in the region, as (1998 – 2002); Member of the Working rms would envy: these include Rainmaker determine the taxable status of prizes oered marketeer. Not only does he speak at numerous well as US and English rms Group on Intellectual Property Protection and academic by the soft drinks company to competition business conferences and events, his rm such as DLA Piper; “Skadden, and Enforcement Issues appointed by the France’s L’Oreal, Sweden’s TeliaSo- In addition to fee-earning work, winners. When the dispute rst began in 1999, produces so many marketing initiatives that Arps, Slate, Meagher & Flom”, Latvian Prime Minister (1999); Swedish Chamber of Commerce tax committee nera, Finland’s Kesko, Norway’s Mr Gencs also acts as the rm’s the tax status of such gifts was unknown – no clients may be forgiven for thinking his rm is Sherman & Sterling” he says. main “rainmaker” and chief ocial guidelines had ever been produced. twice the size it actually is. “We produce tax (1996 – 2006) – member of the board (2003 Statoil as well as global brands such marketeer. As part of this role, he is Eventually, the SRS’s claim – plus an additional seminars and four newsletters per year,” he says, “They send us work, and we – 2006) Latvian Bar Association; Interna- tional Bar Association; American Intellec- as Coca-Cola, McDonalds and extremely active on the interna- penalty charge for an equivalent amount - was proudly. “We’ve also produced a book – Doing enjoy sending work to them.” tional business circuit, belonging thrown out by the country’s Supreme Court, Business in Latvia.” Domestically, he also prefers tual Property Law Association (AIPLA); General Motors. With a particular to an “alphabet soup” of profes- after the SRS tried to change the legal basis of to organic growth to ‘quick x’ European Communities Trade Mark sional associations. These include its argument. For Mr Gencs, this case was Pragmatic and systematic mergers. “So long as our Association (ECTA); International Associa- focus on tax work, Mr Gencs has The American Intellectual important for two main reasons: “The rst was His approach to oering legal advice is similarly clients are happy, I don’t think tion for the Protection of Intellectual worked on both sides of the regula- Property Law Association and the that, if we had lost the case, Coca-Cola would informal. “Clients often tell us that we act more our size is that important,” he Property (AIPPI); The Licensing Executives European Communities Trade have had to pay out substantial amounts of like management consultants than lawyers,” he says. “A few years ago, a typical Society (LES), (USA & Canada); Institute of tory fence. Having advised the Mark Association. However, unlike money,” he says. “But just as importantly, this says. For Mr Gencs, this is a compliment. “If Latvian rm would only Trade Mark Attorneys (ITMA), (UK); Interna- tional Trade Mark Association (INTA); other practitioners of a similar age, was an important test case in relation to the you’re advising an investor on how to reduce comprise 3-4 lawyers. It’s my Latvian prime minister on tax issues German Association for the Protection of he has largely avoided the lawyer- Latvian tax status of the company’s global the number of shareholders in a company, you job to predict what size a Industrial Property (GRUR); Association of during the mid-1990s, he subse- led international organisations marketing strategy.” have to take account of the human as well as the “typical” Latvian law rm will Trade Mark Owners (MARQUES); Interna- such as the IBA. Instead, he prefers legal aspects of this process – how will be in the future.” quently went on to act for commer- tional Federation of Intellectual Property to work with ‘business-led’ organi- Tax haven shareholders feel about what is happening to Attorneys (FICPI); European Patent & cial clients on two major matters of sations, such as regional chambers Mr Gencs is eager to promote Latvia as a favora- them, how will it aect the reputation of the Trademark Attorney (AIPPI and CIPA); of commerce. He is also lectured ble base for both regional companies and company?” tax reform. Latvian Advocate. on tax and commercial law issues business executives. “We advise large numbers at the Stockholm School of of Swedish executives, who just aren’t willing to For his rm’s highly diverse client base, this Articles pay tax rates of 75 per cent, on their tax pragmatic approach is essential. While the rm Largely eschewing the generalist Economics in Riga. Tax Notes International (USA) – ocial boasts an impressive roster of international planning. From a business point of view, it correspondent for Latvia, 2006; BNA World legal conference circuit, he prefers to de nitely helps Latvia to be surrounded by clients, in reality many of these Latvian opera- Intellectual Property Report; Madrid Agree- countries with high tax regimes.” He also points tions are small, and their local managers value spend his free time working with ment Concerning the International out that a new tax regime, introduced in 2003, the “personal” and “practical” touch. This Registration of Trademarks in Latvia; regional chambers of commerce and made it advantageous for shipping companies approach also helps the rm’s stated strategy of European Intellectual Property Review, to register their vessels with The Latvian Ship targeting business leaders in relation to their professional legal and business Sweet & Maxwell (1997); Register. “We acted on the rst registration,” he personal tax planning, in the hope that their 2005 – Corporated for IFOR for Latvia. associations. says. businesses’ will become clients of the rm. Fast Growing Leading firm in tax and intellectual property Law Firm for many consecutive years European Legal 500 Our Firm Recognition Leading firm in tax in Latvia Chambers Europe 2010

The Gencs Valters Law Firm is full service, general practice international Top tier firm in corporate and mergers and acquisitions business law rm focused in tax, litiga- IFLR 1000 The guide to the World’s tion, M&A, corporate, immigration, Leading Financial Law Firms nance and intellectual property law. The rm provides legal, tax, corporate Market leading practice in Tax – nance, managment consulting, evalu- Recommended firm for banking and debt finance ation and due diligence services. Top Tier Tax Law Firm Practical law company 2010 The rm was established in 2000 and TAX DIRECTORS HANDBOOK 2007-2008 by Legalease now has a team of more than 12 lawyers and tax consultants and have grown steadily within the last years. Recent Transactions The rm has particularly strong ties with Scandinavian clients.

The rm is accepted to represent Latvia clients in Munich (Germany) in front of the European Patent O ce as well in Real property- assistance to Cyprus company “Keycrest Limited” in purchase of the Litigation- representing Purolite International Limited, Gencs Valters Law Firm in Lithuania represents French Company L’Oreal (the real estate with total area 2.6 ha, in biggest real estate project in Baltic states (total Llantrisant Business Park, Llantrisant, Wales, UK for the world’s leader in the eld of cosmetics) in the eld of business law and taxation. Alicante (Spain) for Community trade- of 455 ha), called Saliena (www.saliena.com) , located near center of Riga, Jurmala debtor in Latvia in excess of 0.5 million EUR; Calzaturicio L’Oreal is consulted in the elds of taxation, business law and general corporate marks and designs. We are members of: and international airport Riga. Real estate is divided into 50 separate land plots, casadei Shoes (Italy) against distributor in Latvia „Loretti”; law. Gencs Valters law rm was advising L’Oreal in the pre-court case and Latvian Bar Association, the Interna- provided for building of private houses or townhouses. Energetec (Germany) which makes BULLERJAN stoves negotiations with Ambassade de la Beaute. Gencs Valters law rm have been tional Bar Association, Netherlands against a local distributor. advising French Company L’Oreal for over a decade in all three Baltic States. The Chamber of Commerce, the American Representing Aros Arkitekter AB which is subsidiary to Sweco Architects. Sweco main legal issues related to L’Oreal concerns corporate and tax law. Chamber of Commerce in Latvia, the Architects is the largest architectural company in Scandanavia with more than 500 Corporate- liquidation of Inneon Technologies, Swedish Chamber of Commerce in employees. The Sweco Concern based in Stockholm employs almost 5 500 (Netherlands) presence in Latvia. Innenon oered semicon- Gencs Valters Law Firm in Lithuania represents McDonalds (the world's largest Latvia, the Latvian German Association architects and engineers worldwide. ductor and system solutions for automotive, industrial and chain of fast food restaurants) in the issues related to taxation in Lithuania. Our of Enterprises in Latvia, the Sterling multimarket sectors, for applications in communication. law rm currently consults McDonalds on the tax planning issues related to Tax and legal advice to McDonalds and its shareholder from Malta Premier Capital Closing Weatherford (USA) in Latvia - one of the largest loans. member of the British Chamber of Limited, about McDonald’s operations in Malta and the Baltic States. In 2010 the oileld services companies, which operates in more than 100 Commerce, Gold member of the company opened of another eight new restaurants in these three Baltic countries countries. Closing of Siemens Turbomachinery branch Gencs Valters Law Firm in Lithuania represents Maersk Line (One of the biggest Danish Chamber of Commerce in to bring up the total to 39 restaurants - all owned and operated run by Premier (Sweden) in Latvia. Arranging patent and assignment shipping companies in the world) in the issues related to business relocation, Latvia, the Norwegian Chamber of Capital Ltd. matters from Pzer Incorporated (US pharmaceutical taxation and corporate legal matters. Our law rm currently consults Maersk Line Commerce. company, ranking number one in sales in the world) acqusi- in taxation, employment and corporate issues in Lithuania. Representing The General Motors Company, also known as GM, a United States- tion of Wyeth Pharmaceupticals (UK). Members of the rm has lectured on based automaker with its headquarters in Detroit, Michigan. Representation in Gencs Valters Law Firm in Lithuania represents Polish company Prcip Dragmor, tax and commercial law issue with the relation to regulatory, EU and distribution matters. Brands covered - CHEVROLET, Tax services to YIT Oyj which is Finish based company, (company engaged in all kinds of dredging works and reclamation, beach Stockholm school of Economics in Riga CADDILAC, HUMMER. headquartered in Helsinki, which provides property mainte- nourishment construction of breakwaters, river bank reinforcement, nance and management services; the Construction Services trenching/backlling for gas pipelines of large diameters, laying pipes on sea and the Concordia University in Tallinn Representing Saab Automobile owned now by Spyker Cars NV in closing uno cial unit builds housing, large-scale infrastructure. bottom including sewage treatment projects) in the court case against UAB (Estonia). dealership in Riga, Latvia, and enforcement of trademark rights. Other trademarks Klaipedos Hidrotechnika related to the deepening of Klaipeda’s Port channel in represented- FORMULA 1, KOOKAI, SCHWEPES, PAYPAL, VERBATIM, PS PLAYSTA- Banking- advise to pension fund Hipo Fondi, part of state Lithuania and related dispute. Our law rm represents Prcip Dragmor in the The rm's is representative clients TION S, THALASSOTHYS, JAMESON, MIDLETON VERY RARE, CORK DRY GIN, AMD, owned bank „Latvijas Hipotēku un zemes banka” regarding ongoing court case related to the deepening of Klaipeda’s Port channel in comprise such multinational compa- SPALDING, ORACLE. nance and corporate matters. Advise to Swedfund Interna- Lithuania. The case is one of the biggest cases currently held in Klaipeda. nies as well as medium size companies tional regarding investments into Latvian furniture produc- and entrepreneurial growth compa- Studies and Latvian National reports performed for European Commision- „Study tion group Troll. Swedfund International is a risk capital Gencs Valters Law Firm in Lithuania represents UK Venture Capital Firm (company nies. on the Transparency of Costs of Civil Judicial Proceedings in the European Union”; company owned by the Swedish state. focused on high tech and Internet investment) in acquisition of Lithuanian „Study on Harmful Traditional Practices in the European Union”; „National Report company. Our law rm currently represents UK Venture Capital Firm in one of the on the application of the European Directive 2003/8/CE of the 27 January 2003 on biggest deals in social networks development sphere through acquisition of Our Clients are also local municipalities Lithuania legal aid in cross-border disputes”. Lithuanian company (company involved in developing various social networks). and the Latvian Privatization Agency. Gencs Valters Law Firm in Lithuania is advising Converse Inc. Pan Baltic restructuring of A.P. Moller - Maersk by establishing new Damco (the largest manufacturer of athletic footwear in the United Gencs Valters Law Firm in Lithuania is advising Mitsubishi Tanabe Pharma Corpo- combined brand of the A.P. Moller - Maersk Group's logistics activities previously States) in the cases related to trademark Converse, Converse ration (creation of pharmaceuticals) in the cases related to trademark Tinubin known as Maersk Logistics and Damco. Involved in global liner shipping services, All Star Chuck Taylor, All Star and graphical trademark Star & protection in Lithuania. Gencs Valters Law Firm represents Mitsubishi Tanabe As our client, you will be guaranteed Maersk Line operates over 550 vessels. It is currently the largest container shipping Chevron Design protection in Lithuania. Gencs Valters Law Pharma Corporation in the case of trademark protection. unmatched service and commitment company in the world. Firm represented Converse Inc. at Lithuanian Patent Bureau as well as access to our full service in the case of trademark protection against Lithuanian Gencs Valters Law Firm in Lithuania was advising The British Council in Lithuania including counseling and 8 million EUR restructuring and tax advice to Korsnas AB (Sweden). Korsnäs is one trademark Clintas. Converse Inc. is one of the long-lasting (The British Council is the UK's leading international organization for educational of Sweden's leading forestry companies, Korsnäs also produces bio fuel pellets at clients of Gencs Valters law rm, which is advising the client and cultural relations) for starting its activities in Lithuania and related taxation client/attorney partnership. two plants in Latvia and has loading and storehouse facilities operation in the Riga for over 10 years on the regular basis. Majority of the cases issues. Our law rm was advising The British Council in the eld of taxation for Free Port. Korsnas is a wholly-owned subsidiary of Investment AB Kinnevik. involved concerns trademark protection in Baltic States. public institutions and related issues to the activity start-up. Gencs Valters Law Firm in Lithuania is advising Estonia Gencs Valters Law Firm in Estonia represents client (individual) in UAB ACG Nystrom (the company in Lithuania, the immigration issues in the Tribunal of United Kingdom. Gencs which oers machines, spare parts and technical Gencs Valters Law Firm in Estonia is advising shareholder Valters Law Firm represents its client in the immigration issues in service for the upholstery textile, clothing and of companies Tuletorn Projekt OÜ (Estonia), Stiftung- the Tribunal of United Kingdom against the decision of Embassy shoe industry in Lithuania, Latvia, Estonia and Leuchtfeuer (Germany) and IAPRS (Portugal) in the cases of United Kingdom in Warsaw, Poland. Consultation included Belorussia) in the relation of international tax related to taxation, asset transformation and company client representation in collection of evidences, negotiations planning issues. Our law rm was advising UAB restructuring issues in EU partnership purposes in with Estonian authorities, court claim preparation and submis- ACG Nystrom in connection to international tax Estonia, Germany and Portugal. Advising included rstly sion. planning and business development into Baltic the cross-border partnership issues, involving the estab- States. lishment, real estate ownership and transformation of Gencs Valters Law Firm in Estonia represents client (individual) in partnership and the taxation in elds of process planned. the Self Employment taxation issues in the Estonian Tax and Gencs Valters Law Firm in Lithuania represents Secondly the questions were related to the situation in Customs Board. Gencs Valters Law Firm represents its client in Belgian credit insurance company Ducroire | Estonia – a company Tuletorn Projekt OÜ – the taxation, the Income and Value Added Tax issues in Estonian Tax and Delcredere SA.NV's in a mission to protect its assets, loan and shares issues of company. Customs Board. Consultation includes the advise in company clients against the risks associated with domestic establishment and related questions in business law. and international commercial transactions and to Gencs Valters Law Firm in Estonia is advising Kik Textilien facilitate the nancing thereof. Our law rm und Non-Food GmbH (Germany) in the cases related to Gencs Valters Law Firm in Estonia represents construction advised in the international commercial transac- trademark protection in Estonia. Gencs Valters Law Firm companies as Hardex SIA, J.O.Z SIA and Infrainsenerid OÜ (Latvia tion related to business insurance policies. represented Kik Textilien und Non-Food GmbH at the and Estonia) in the construction issues in Estonia and related Patent Appellation Commission of Estonia in the case of questions. Gencs Valters Law Firm represents its clients in Gencs Valters Law Firm in Lithuania advises in trademark protection against Estonian trademark KICKS. construction eld in company establishment, taxation, licenses, acquisition of business in Lithuania for Nexum Kik Textilien und Non-Food GmbH is one of the construction supervision and employment law issues in Estonia Insurance Technologies, provider of software long-lasting clients of Gencs Valters law rm, which is and EU countries. Consultation included client representation in solutions for Scandinavian insurance company If, advising the client for over 10 years on the regular basis. collection of evidences, negotiations with Estonian authorities, Swedbank and Lansforsakringar bank. Our law Majority of the cases involved concerns trademark court claim preparation and submission. rm advised Nexum Insurance Technologies in protection in Baltic States. acquisition of Lithuanian company. Gencs Valters Law Firm in Estonia represents EBay (England) in Gencs Valters Law Firm in Estonia represents Kverneland the eld of company transformation and related issues. Gencs Gencs Valters Law Firm in Lithuania advises Sika Group Kerteminde A/S (Denmark) in the Value Added Tax Valters Law Firm represented EBay in question of company Group (Manufacturer of speciality chemicals for disputes in Estonia. Gencs Valters Law Firm represented transformation, related to employment, taxation and asset construction and industry) in variety of corporate Kverneland Group Kerteminde A/S at the Estonian Tax questions. law, employment and taxation issues. and Customs Board in questions related with cross- border Value Added Tax. Consultation included the Gencs Valters Law Firm in Estonia represents L’Oreal (France) in Gencs Valters Law Firm in Lithuania represents procedural actions in Estonian Tax and Customs board, the eld of business law and taxation. L’Oreal is consulted in the UAB Hifab (Swedish market leader in the eld of the negotiations with the authority and partners of elds of taxation, business law and general corporate law. Gencs project management) in the sphere of business company in Estonia and the regular process for VAT Valters law rm have been advising French Company L’Oreal for law. refund. over a decade in all three Baltic States. The main legal issues related to L’Oreal concerns corporate and tax law. Gencs Valters Law Firm in Lithuania represents Gencs Valters Law Firm in Estonia represents K-TEK Latvian Company SIA Rigas Dzirnavieks (company International Inc. (USA) in the issues related to corporate Gencs Valters Law Firm in Estonia represents McDonalds (USA) in taking part in the development of Latvian grain governance and EU structural funds in Estonia. Gencs the issues related to taxation in Estonia. Our law rm currently farming industry and through partnership Valters Law Firm represented K-TEK International Inc. as consults McDonalds on the tax planning issues related to loans, provides bakery industry and retailers with the shareholder of Estonian Nanotechnology Compe- interests, employment and thin capitalization rules. healthy and stable quality grain based products). tence Center (ENCC) at the disputes between other The company was advised in business develop- shareholders and Enterprise Estonia (EAS) as the author- Gencs Valters Law Firm in Estonia represents Maersk Line ment in Lithuania and related taxation issues. ized body for EU structural funds in Estonia. Disputes (Denmark) in the issues related to business relocation, taxation were related to patent, assets, activities issues of ENCC for and corporate legal matters. Our law rm currently consults Gencs Valters Law Firm in Lithuania represents now and in future and the misunderstandings between Maersk Line in taxation, employment and corporate issues in Latvian Company Tshudi Logistics (company ENCC and EAS. Consultation included client representa- Estonia; providing Logistic solutions and transport services tion in Shareholders Annual Meeting of ENCC and several and belonging to the Tshudi Group of Companies) negotiations with the Chairman of the Board and Gencs Valters Law Firm in Estonia advises Sika Group in a court proceeding against individual company shareholders of ENCC, advising the parties in future (Swizerland) in variety of corporate law, employment and II Litvirta. activities and related questions. taxation issues.

Gencs Valters Law Firm in Lithuania represents Gencs Valters Law Firm in Estonia represents Tallinna Gencs Valters Law Firm in Estonia represents AB Hifab (Sweden) Latvian company SIA Isosol in the issues related to Pesumaja OÜ (Estonia) in the issues related to cross- in the sphere of business law. taxation. border debt collection and contract termination proce- dure between Tallinna Pesumaja and Domina Hotel in Gencs Valters Law Firm in Estonia is advising Mitsubishi Tanabe Gencs Valters Law Firm in Lithuania advises UAB Riga. Gencs Valters Law Firm represents Tallinna Pharma Corporation (Japan) in the cases related to trademark Graina (company engaged in wholesale of Pesumaja OÜ in periodical debt collection between Tinubin protection in Estonia. medical equipment, products and technologies; Tallinna Pesumaja OÜ and its clients. Secondly advises Firm represents Mitsubishi Tanabe Pharma Corporation in the maintenance and service of medical equipment – Gencs Valters Law Firm Tallinna Pesumaja to terminate case of trademark protection. installation, service, repair and medical stu the long-term service contract with Domina Hotel in Riga. training). Our law rm advises in tax planning Consultation included client representation in disputes Gencs Valters Law Firm in Estonia advises UAB Graina (Lithuania) opportunities related to business development in between Tallinna Pesumaja and its clients and partners, in cross-border taxation and business issues. Our law rm the Baltic region. cross-border debt collection and the procedure with advises in tax planning opportunities related to business devel- contract termination with Domina Hotel in Riga. opment in the Baltic region. Our publicly disclosed ESTONIA Balbiino representative CV- Online Eesti Forma Media clients comprise: Liviko (beverages) Orto Rīgas Miesnieks (meat productions) USA THE NETHERLANDS UNITED KINGDOM Sportland International (sport equipment) Advanced Inhalation Research (pharmaceuticals) Dutch Royal (dredging) A one Feed (fertilizers) TMB Elements (concrete production) Advanced Medical Optics (pharmaceuticals) Formula One Management Abiogen Pharma Vipis Advanced Micro Devices (chips) Inneon (computer chips) Aboca Societa' Agricola Alkermes Nutricia International Alfa Wassermann AUSTRALIA American Cyanamid Company (pharmaceuticals) Petrplus International Carpi Tech Italia (technology) Apple And Pear Australia (fresh fruit) Capstone Turbine Corp. (turbines) Spyker Cars (cars) Consiglio Nazionale Delle Ricerche Exide Australia Pty (car products) DPWN Holdings (USA) Veerhuis Beheer Diapharm Genentech (pharmaceuticals, growth hormones) Dompe pharma JAPAN General Motors (cars) SWITZERLAND Glaxo Smitkline (pharmaceuticals) Sony Computer Entertainment (entertainment) L.K.A. Incorporated Amrona Graveson Energy Management Komatsu (machinery) Mc'Donalds (restaurants) Dan Stoicescu Ice Mitsubishi Chemical Media (oppy disks) Omnicom International Holdings Hellsin Healthcare (pharmaceuticals) Indena Mitsubishi Pharma Corporation (pharmaceuicals) Oracle (software) Nesi Plant Instituto Luso Farmaco d'Italia Yamaha (motorbikes) Paypal Nestec Instituto nazionale per lo studio e la cura dei tumori Pharmacia & Upjohn Company (pharmaceuticals) Nestle (food product) (pharmaceuticals) SPAIN R.P. Scherer Technologies Rehau (plastic products) International Hair Cosmetics Consejo Superior de Investigaciones Cienti-cas SGG Lisco (sports goods) Sika John Wyeth & Brother (pharmaceuticals) Weatherford (oil transport equipment) Societe Des Produits Nestle North Aegean Sea Canneries TURKEY Young & Rubicam SSI Simex Sport (sport equipment) Pace Plc Dima Gida Tekstil Deri Insaat Maden SHS International Turizm Orman Urunleri SWEDEN GERMANY Sotheby's (auction) Sanayi Ve Ticaret Alstom Generation (turbines) Baltic kudra and Handels and Production (peat) United Beauty Products SINGAPORE Arctic Paper BASF Plant Science Westler Foods Yatz Electronics Industry Brax Shipping (sea transport) Beiersdorf (cosmetics) GREECE Brovi Holding Aktiebolag Biologische Insel Lothar Moll ITALY North Aegean Sea Canneries Concordia Bus Nordic Energetec (heating products) Chiesi Farmaceutici (pharmaceuticals) Uni-Pharma Kleon Tsetis Pharmaceutical Laboratories Hifab (construction supervision) KIK Textilien und Non-Food Labarotorios Menarini (pharmaceuticals)

Interbus (packaging and storage of goods) Merck Patent (pharmaceuticals) Lachifarma SRL Laboratorio Chimico Farmaceutico Salentino LUXEMBOURG Korsnas (timber) Messe Dussedorf (exibitions) Maria De Luca DBA Lux 1 Snickers (clothing) Micromet Monte Research (pharmaceuticals)

Stockholm School of Economics in Latvia NiGuRa Metzler International Nicox CANADA Telia International Carrier (telecommunications) Pelikan Vertriebsgesellschaft Pharmacia & UpJohn Company (pharmaceuticals) Roots Canada Wonderland International (furniture) Profos Plast Wood

Zublin (construction) Samariter International e.V. Sigma-Tau (pharmaceuticals) TAIWAN Siemens (energy products) Solmag King Car Food Industrial NORWAY Simex Sport Tecnomax-Due S.N.C. Di Novarini S.&Boccardi M.

DNV (quality auditors) RUSSIA FRANCE IRELAND Obschestvo s Ogranichennoi Otvetstvennostyu FINLAND Accor Flatwire Firma Radius-Servis Baltic Group (shipping and catering) Alstom (energy) Irish Distillers (alcoholic beverages) Remiks (constructions) Ensto (electrical products) Cuisine de France (food) Old Bushmills Distillery & Co (alcoholic beverages) Sojuzplodimport Kesko (retail) Essilor International Stratek Plastics

K-Rauta (retail) Fromageries Bel Wyeth Research Ireland KOREA Paulig (co ee and spices) Glup's France (candy products) Pantech Suomen Rehu (chemicals) L'Oreal (cosmetics) POLAND

Laboratoires THEA Dragmor Suprema (brokerage and nancial services) GRAND CAYMAN Legrand France Kama Foods (food products) VR Track (railroads) Atlantic Industries Lesieur (food) Olvit (food products) Canada Dry DENMARK NicOx SA DP Beverages Aldaris (beverages) Sano-Aventis Broste (candles) Geopal (production) Scandlines (shipping) trademarks Represented Tax Services in Latvia in Lithuania list of fields of our expertise in taxation is as follows: Tax services are one of our core practice areas Lithuania remains attractive to foreign since the very foundation of the law rm. Our investors because of favorable tax TAX PLANNING AND OPTIMIZATION law rm has been recognized by our clients as planning opportunities. Notably, the rst tier tax advisor in Latvia. Since 2008 we are corporate income tax has dropped to TAX LITIGATION also providing tax services in Estonia and Lithu- 15 percent (from 20 percent). Moreo- ania. ver, small businesses that employ 10 or INTERNATIONAL CROSS-BORDERS TRANSACTIONS fewer employees and have annual We oer tax advice in international and domes- income of EUR 144810 or less are eligi- tic tax planning, tax litigation, market entry strat- ble for a special 5 percent corporate VALUE ADDED TAX (VAT) egies and cross-border tax issues. With our deep income tax rate (previously 13 knowledge of taxation we are able to oer a percent). Also, a new law allows the SOCIAL SECURITY truly comprehensive legal service also in other transfer of losses from 2010 and earlier practice areas, such as mergers and acquisitions. between a Lithuanian resident parent CORPORATE INCOME TAX company and its domestic subsidiar- Before commencing business activities in Latvia, ies. Until 2013, companies can take WITHHOLDING TAXES it should be noted that all income derived in part in investment projects that oer Latvia is subject to corporate income tax 15%. attractive tax bene ts. PERSONAL TAXATION, INCLUDING FILLING OF ANNUAL There are thin capitalization and transfer pricing TAX RETURNS FOR EXPATRIATES rules applicable, as well as there is withholding For further assistance on tax planning, tax on certain categories of outward payments. please contact our law rm. REPRESENTATION BEFORE TAX AUTHORITIES However, a recent and attractive possibility is to reduce taxable income by deemed interest rate APPEAL OF TAX ASSESSMENTS on retained earnings. That is, companies are able in Estonia to reduce their eective tax rate, if their share- holders do not distribute retained earnings. Estonian tax system is considered to PREPARATION OF DECLARATIONS Additionally, carry loss forward period is ve be simple and liberal. Compared to years. most European countries, the major ARRANGING RESIDENCE CERTIFICATES ACCORDING TO dierence is that income tax has only DOUBLE TAXATION AGREEMENTS Another recent development is Micro-Enterprise one general at rate and the corporate Tax. This type of tax may be applied on small income tax is 0%. Company taxation PROPERTY TAX companies and sole proprietors, whose turnover includes the taxation of employees, does not exceed 100 000 EUR per year and who VAT and the tax in case of company PAYROLL TAXES meet several other criteria regarding number pro t is distributed (dividends), which and remuneration of employees. The tax rate is accordingly is 27% (21/79) of the pro t VAT REPRESENTATIONS AND REGISTRATION only 9% on turnover and it includes corporate distributed. income tax, social contributions, personal EXCISE TAX income tax and other labor related contribu- The VAT is 20% for most goods and tions. services. The VAT for some goods, for PACKAGING TAX example books, medicines are taxed In general, VAT registration is mandatory for with reduced VAT rate 9%. General VAT NATURAL RESOURCE TAX companies or persons, whose turnover exceeds registration requirement for business 14 000 EUR. Dierent thresholds are applicable entities is 16 000 EUR turnover, calcu- for certain categories of goods or for interna- lated per year. The registration obliga- STATE DUES tional or intra-Community transactions. Related tion of foreign traders, without any companies may establish a VAT group by pool- permanent establishment in Estonia, LAND TRANSFER DUES ing their obligations and rights, while communi- may arise from the rst day they start cating with Latvian tax authority. business in Estonia. TAX AUDITS

For further assistance on tax planning, please For further assistance on tax planning, ACCOUNTING CONSULTING contact our law rm. please contact our law rm. „Doing Business in Latvia” Our Website

„Doing business in Latvia” guide contains “must to know” items required to succeed in the Latvian market for both the start-up companies as well as established busi- nesses. The guide describes practical points of the Latvian tax system, including expatriates taxation, provides for a company registra- tion and immigration tips as well as deals with competition, intellectual property, nancial reporting and accounting mat- ters. Please, let us know if you have any special questions on the matters discussed on would like to receive by email the updated versions of the guide automatically. Our Location