Abengoa has a firm commitment to managing tax-related matters, using good practices and acting with a transparent approach, in compliance with the applicable tax regulations and obligations in each jurisdiction in which it conducts business.

The company makes a responsible and efficient effort to meet its tax obligations, avoiding any significant risks and unnecessary conflicts. In this regard, the company pays € 10.61 for every € 100 of its revenue.

Taxes paid, by región (2018)

In 2018, Spain and South America represented 71% of the total taxes paid by Abengoa, with Brazil accounting for 42% of the taxes paid in South America.

Abengoa’s tax strategy was approved by the Board of Directors and it is based on a series of basic principles for action on all tax-related matters:

• Requiring all employees to observe the principles of honesty, integrity and good judgementin all decisions they take, in particular, as regards tax-related matters, while ensuring they observe the applicable regulatory and legal requirements and reasonably interpret the applicable regulations in each operation and business.

• Ensuring that transparency and integrity are the base for the company’s actions associated with tax-related matters and in the relationship promoted by Abengoa with the Tax Administrations in the different jurisdictions in which it operates. In this way, Abengoa has adhered to the code of Good Tax-Paying Practices of the Spanish Tax Administration.

• Avoiding the use of opaque structures created for tax-related purposes, understood as those designed to prevent the Tax Administration from gathering information about the ultimate responsible for the activities or ultimate holder of the corresponding goods or rights.

• Transfer price policy associated with our operations with associated entities, in compliance with the arm’s length principle or the legal market valuation principle.

• Development of responsible tax policies that allow the company to prevent conduct that can generate significant tax risks. In this regard, Abengoa’s internal control system based on the COSO (Committee of Sponsoring Organizations of the Treadway Commission) methodology includes a specific section on taxation with the associated controls, which is reviewed by an external auditor, as in the case of all other areas.

As regards the prevention of financial risks, fraudulent actions and money laundering, Abengoa makes explicit reference in its policy that investments made in tax havens are solely based on purely justified economic and business reasons not associated with other motivations at all, such as to receive tax benefits or be qualified as tax-exempt.

In addition, the organisation operates in other regions that, even though they are not included in the list of tax havens of the AEAT, they are included in the lists of other international bodies and observatories, which consider them territories with a lower tax burden than Spain. In this regard, it has subsidiaries in Delaware (US), the Netherlands, Luxembourg, Uruguay and Switzerland. These subsidiaries have been created for strictly economic or business purposes, or to simplify mercantile and administrative processes, but not for tax evasion, money laundering or illicit activity funding reasons.