Telekom Austria : Group Tax Policy

Tax Policy

A1 Telekom Austria Group

1. Introduction

A1 Telekom Austria Group (A1 Group) is a multinational group of companies, and thus is subject to different local tax legislation and international tax treaties, which have to be observed besides local commercial and company law. A1 Group pays taxes and duties in the countries in which it operates in accordance with the laws of each of those countries.

The purpose of the Group Tax Policy is to mitigate the risk of non-compliance with tax and commercial law by application of standardized and documented processes and principles.

2. Scope

This Policy applies to all companies in which the holding company (Telekom Austria AG) directly or indirectly holds at least 50% or in which it exercises control in another way. This Policy is complemented by a Tax Directive setting out in more detail the processes, tasks, and responsibilities for tax matters in the daily business in all operations.

The Policy applies to all types of taxes and duties worldwide. This includes all direct taxes (corporate income taxes, trade taxes), withholding taxes, personal income taxes and indirect taxes (sales taxes), capital taxes (property taxes) and other duties (customs duties, energy taxes, social security contributions and tax incentives, such as investment and research subsidies).

3. Tax Strategy - our principles

The aim of the tax strategy is to manage efficiently the tax expense of A1 Group, avoid any tax risks and limit the tax burden within the legal frameworks.

A1 Group always follows applicable tax laws and seeks to comply with the letter and the spirit of the laws. We exercise tax options to reduce the tax burden.

We perform transactions between A1 Group companies on an arm's-length basis and in accordance with current applicable OECD principles, especially the OECD guidelines on multinational enterprises and the OECD transfer pricing guidelines. The A1 Group Code of Conduct sets out the fundamental principles for our actions.

A1 Group pays taxes, where value is generated. Transfer prices are not used for profit/tax shifting. A1 Group does not make use of tax havens or offshore locations with primary goal of keeping transactions secret and confidentially.

A1 Group seeks for a collaborative way of working with tax authorities to resolve disputes, clarify uncertainties or achieve agreements, and fulfills all obligations with regard to retention and record keeping.

4. Risk Management & Governance

Tax Risk Management is embedded in overall A1 Group's Risk Management/ICS. Local management is responsible to have adequate controls implemented. The effectiveness is reviewed yearly by controls under the Sarbanes-Oxley-Act (SOX).

The Tax Policy is compulsory for all fully consolidated A1 Group companies. It is owned by the Group CFO. Responsibilities for tax matters are distributed between the Group Tax department and the local management. Responsibilities, cooperation, exchange of information and collaboration with external tax consultants are set out in the Tax Directive.

This policy and any other directives related to tax matters are subject to approval by the Management Board of A1 Group.

V 1.0

Approved by A1 Group Management Board on September 25, 2023

Alejandro Plater, CEO

Thomas Arnoldner, Deputy CEO