Tax compliance strategy

1. Principle

TAG* is committed to its tax responsibility and therefore to actively pursuing and fulfilling all of its tax obligations and complying with the relevant tax laws of the countries in which it operates.

2. Tax Complicance Strategy

The tax compliance strategy aims to ensure compliance with all TAG's tax obligations. It contains the tax principles and applies to all relevant types of taxes to be declared, filed, withheld or paid by TAG. As a central corporate task, the tax compliance strategy is an integral part of TAG's risk and compliance strategy. It was drawn up by the Group tax department, adopted by the Management Board of TAG Immobilien AG and published. The contents are subject to annual review and regular further development.

The basis for a responsible and dutiful handling of tax matters and thus an essential element of the tax compliance strategy is the proper and timely fulfilment of all tax obligations in compliance with the respective tax regulations in the countries in which TAG operates. In doing so, TAG is not only guided by the wording of the law, but also takes into account the intention of the legislator and the purpose of tax law. To ensure tax compliance in all areas where tax obligations have to be fulfilled, TAG's Group Tax Department is generally involved. In particular, this department ensures the factual accuracy of the tax positions determined in the annual financial statements and tax returns.

Every transaction between the Group companies is carried out at transfer prices in line with the market, taking account of the arm's-length principle. TAG refrains from abusive tax transactions. In particular, no tax-induced arrangements without business and tax substance are used, no shifting of value creation to low-tax countries is undertaken, and no jurisdictions are used for tax avoidance (so-called "tax havens").

Tax risks are identified and minimised through effective risk management. There is continuous documentation and regulated monitoring of the processes. The identified risks and the measures derived from them are validated once a year, improved if necessary and adapted to current tax legislation. Significant risks are recorded in the risk management report and reported to the Executive Board and the management on a regular basis. Tax planning is continuously carried out in a responsible manner and in accordance with the legal requirements.

TAG works together with the tax authorities in a trusting and cooperative manner. This applies in particular with regard to tax risks, tax events and compliance with tax legislation.

All measures of TAG's tax compliance strategy serve to avoid violations of tax laws, criminal and economic risks as well as reputational risks.

Hamburg, September 2023

The Management Board

TAG*: TAG Immobilien AG including all Group companies belonging to the TAG corporate group