CG malls europe - Commerz Real

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Commerz Real Estate Master FCP – SIF
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2009
21. Income and withholding tax expenses
Movements in the Fund’s income tax expense position are as follows:
The tax on the Group’s profit before taxes differs from the theoretical amount that would arise using the weighted average
tax rate on the applicable profits of the consolidated companies as follows:
The weighted average applicable tax rate was 33.15% in 2009 (2008: 33.20%). The decrease is solely caused by a
change in the profitability of the group’s subsidiaries in the respective countries.
In Portugal interest payments paid to non-residents are subject to withholding tax. As per balance sheet date, two loan
facility agreements were signed between the Luxembourgian lenders CGM Lux 2 Sarl and CGM Lux 3 Sarl and Forum
Almada and Forum Montijo respectively. According to the loan facility agreements these loans accrue interest on a
quarterly basis and both Forum Almada and Forum Montijo have been levying withholding tax on the interest amounts
paid. The payment and withholding taxes on the interest were postponed to the end of 2009 and interests were accrued
in the books. These withholding taxes are due when the interest payments are arranged or when the interest payments
become due. In Portugal the domestic withholding tax rate on interest due/payment to non-residents is currently 20%.
Applying the Portuguese – Luxembourgian Double Tax Treaty the withholding tax rates for cross border interest payments
is reduced to 5%. After elapsing the holding period of two years of Forum Almada and Forum Montijo and when
other formal conditions are fulfilled, it will be