Source: KPMG US Policy Center Effective Date: 3/15/2009 Download Date: 6/23/2009

Tax Professional Designation / Credential Promotion PolicyRequirement for Tax Professionals to obtain defined Professional Designations / Credentials in order to be eligible for promotion to Manager and / or Senior Manager

Beginning July 1, 2010, to be promoted to Tax Manager or Tax Senior Manager, an individual must complete the professional designation / credential requirement(s) for the practice / service line to which the employee is aligned. Required designations / credentials are summarized by practice and product identification code on the following link Tax Product IDs . Regardless of practice, tax professionals who are eligible to sit for the CPA exam are subject to the CPA requirements as defined within this policy.

Please note that in those areas / offices / practices that already have a current requirement for some / all of the outlined professional designations / credentials, those requirements remain in effect for all promotions in the interim. In those areas / offices / practices that are now implementing the promotion designation / credential requirements, compliance is required for promotions beginning July 1, 2010; however, early adoption of this policy is encouraged.

For those professionals required to obtain their CPA and / or Juris Doctorate (JD) prior to promotion to Tax Manager, they must satisfy one of the following: 1. hold a current, active CPA license in the state in which their office is located; or 2. satisfy requirements (a) and (b) to be CPA eligible, (outlined below) and commit to completing requirement (c) prior to promotion to senior manager.

CPA eligible means that you are eligible to obtain a CPA license because you have: a. Passed the Uniform CPA Exam and b. Met the applicable state board of accountancys education requirement and c. Met the applicable state board of accountancys experience requirement, or 3. hold a current, active CPA license in any state and submit a written plan to obtain a CPA license in the state in which their office is located within two years. The plan should be submitted to the individuals performance manager, Business Unit Partner in Charge or Area Service Line Leader, Area or Service Line Risk Management Partner, and the Partner-in-Charge, Tax Risk Management (or their designee); or 4. have successfully completed a Juris Doctorate (JD) degree. Note: licensing is not required; or 5. obtain a written waiver requiring approval by individuals performance manager; Business Unit Partner in Charge or Area Service Line Leader; Area or Service Line Risk Management Partner, and the Partner-inCharge, Tax Risk Management (or their designee). Factors that may be considered in granting waiversPage 1 of 3

include, but are not limited to:q q q q

credentials such as advanced tax degrees, the nature of the individuals responsibilities in the tax practice inability to meet audit work experience requirement for licensure CPA licensure in a state other than the state in which the employees office is located where the ability to obtain a license in the employees home state is not practical due to specific state requirements (i.e. number of audit hours needed for licensure) within the department to which the employee is assigned

The approved waiver and any accompanying supporting documentation should be stored in the employees Personnel File at the Human Resource Service Center. Individuals aligned to a practice requiring a CPA or JD and not meeting one of the requirements outlined in 1 through 5 above are not eligible for promotion to manager in the Tax practice. Additionally, transfers from one Tax practice to another may result in the need to pursue supplemental or additional professional designations / credentials See Transfers below. Each KPMG professional, regardless of job function or level, who possesses a current, active CPA license is required to be a member in good standing with the American Institute of Certified Public Accountants (AICPA). For those professionals required to obtain their CPA and / or JD prior to promotion to Tax Senior Manager, they must meet the same requirements for promotion to manager with two exceptions:q q

Requirements # 2 and # 3 above are not applicable Requirement # 5 If a waiver was previously attained, the waiver will be reviewed by the individuals outlined under # 5 above to determine whether it is still valid. A new written waiver might not be required based on the review of the original approved waiver.

Transition Plan for existing Managers, Senior Managers and Managing Directors: Individuals currently holding Managing Director, Senior Manager, or Manager titles will be granted until July 2010 to comply with this policy. An action plan should be developed and approved in conjunction with the formal performance management process. Compliance An individual's failure to comply with the Tax practice requirement to obtain practice specific professional designations / credentials can adversely affect the firm, as well as the individual. In circumstances of noncompliance without appropriate waiver, professionals may be subject to disciplinary action, including but not limited to demotion or termination from the firm. The determination of the action(s) to be taken shall be made by the individual's performance manager in consultation with the professional's Business Unit Partner in Charge or Area Service Line Leader, Area Managing Partner, National Service Line Leader (if applicable), Area or Service Line Risk Management Partner, the Partner-in-Charge, Tax Risk Management, and the Tax National Managing Partner. The disciplinary action taken should be documented in the individual's personnel file. TransfersPage 2 of 3

Individuals transferring into a Tax Practice have two years upon the transfer to comply with the professional designation / credential requirements set forth by the practice to which the individual transfers. Please visit the following link Tax Product IDs to review the requirements for each tax practice and product identification code. Promotions of International Assigneesq

q

Inpatriates will be reviewed on a case-by-case basis individually, factoring in any promotion requirements of their home country. Expatriates Are required to meet all US requirements documented in this policy.

Please contact the appropriate Tax Advisor with any questions regarding the Tax Professional Designation / Credential Promotion Policy. KPMG LLP reserves the right to modify or discontinue this policy at any time and for any reason(s). To view all other HR Policies, please click here .

2009 KPMG LLP, a US limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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