Electrolux United Kingdom Sub-Group Tax Strategy 2024-2025

1. Introduction

AB Electrolux, including subsidiaries (“the Group”), is a global leader in home appliances that has shaped living for the better for more than 100 years. The Group offers thoughtfully designed, innovative, and sustainable solutions under well-known brands such as Electrolux, AEG and Frigidaire.

The Group carries out business in the United Kingdom through a sub-group (“UK sub-group”), with the head of the UK sub-group being Electrolux Investments, company number 04529088.

The head of the UK sub-group is responsible for ensuring a UK sub-group tax strategy (“the Tax Strategy”) is published, which contains information on procedures regarding all tax matters within the UK sub-group and outlines the general framework for how the UK sub-group deals with tax-related matters. The Tax Strategy reflects the Group Tax policy (which can be accessed here) and each of the more detailed internal Electrolux Group Directives on Tax, Indirect tax and Transfer pricing, all of which address guiding principles for those involved in tax matters, their key responsibilities, systems and controls, and details on oversight of tax matters in general. The Tax Strategy is updated annually to reflect changes in our group-level tax policy and tax directives. The current version of the Tax Strategy is applicable for the financial year ending 31 December 2024.

2. Requirements for a group tax strategy

The Finance Act 2016, paragraph 17 requires that a group tax strategy on behalf of a UK sub-group must set out the following:

• The approach of the sub-group to risk management and governance arrangements in relation to United Kingdom taxation.
• The attitude of the sub-group towards tax planning (so far as affecting United Kingdom taxation).
• The level of risk in relation to United Kingdom taxation that the sub-group is prepared to accept.
• The approach of the sub-group towards its dealings with HMRC.

A sub-group tax strategy may also:

• Include other information relating to taxation (whether United Kingdom taxation or otherwise).
• Deal with a matter mentioned in points a)-d) above by reference to the sub-group as a whole or to individual members of the group.
• Be published as a separate document or a self-contained part of a wider document.

2.1. Our approach to the requirements

The Tax Strategy is divided into sections which concern the requirements in points a)-d) above. The Tax Strategy concerns the UK sub-group as a whole, unless it is specifically indicated that a certain section only concerns individual members of the UK sub-group. Further, the Tax Strategy is only contained in this separate document and is not part of a wider document.

3. The Tax Strategy

3.1. Risk management and governance arrangements

The Group strives to be a best-in-class corporate citizen in every jurisdiction where it operates, and the Tax Strategy requires the UK sub-group to follow this approach when it comes to matters of taxation (and business in general) in the United Kingdom.

The UK sub-group shall comply with relevant laws and regulations in the United Kingdom. Where tax laws do not give clear guidance, prudence and transparency shall guide any decisions. The intention is always to pay our taxes, as well as file our tax returns, in a timely and correct manner. This in turn is supported by relevant policies, compliance processes, and IT support in the United Kingdom as well as relevant training for employees engaged in tax-related tasks.

We constantly monitor the ever-changing tax landscape and whenever changes are made, we seek to adopt the new approach, adapt to the same, and improve our internal processes to always be compliant and a best-in-class corporate citizen. We see tax as a very important part of our social responsibility.

From a governance perspective, the Board of Directors of Electrolux Investments has overall responsibility for the tax strategy and governance of the UK sub-group. Tax matters in the United Kingdom are handled by local personnel employed by Electrolux plc. The local personnel have appropriate tax knowledge to handle tax matters locally but may call on support from the Group Tax function in Sweden, which includes the Head of Tax, and external tax advisors, where needed.

All employees working with tax matters shall strive to act in accordance with the Group tax policy, the Tax strategy as well as the Electrolux Code of Conduct found here. Any decision taken, tax-related or not, shall be guided by the idea of the Group as a best-in-class corporate citizen in every jurisdiction where we operate. Key tax matters are referred to the relevant boards of the Group, including the Tax Board if needed.

The UK sub-group primarily seeks tax advice from large, international, and reputable accounting or law firms. Advice is generally sought to deal with complex matters, and it is expected to be consistent with relevant rules and regulations in the United Kingdom. In case the relevant rules and regulations do not provide clear guidance, the UK sub-group will endeavour to have robust arguments for any positions taken and to seek advice from HRMC and other relevant authorities beforehand, when it is available and practically possible.

3.2. Attitude towards tax planning

The commercial needs of the Group are paramount and all decisions concerning taxes will be undertaken with this in mind, such as acquisitions and divestments, and this also applies to the UK sub-group. Where different options exist to achieve the same commercial result, tax effects will be taken into account, but the Group and the UK sub-group will not engage in arrangements that are purely tax-driven.

The UK sub-group will always consider the Group's reputation, brand, corporate and social responsibilities, as well as applicable legal and fiduciary duties of directors and employees, in all tax-related matters.

3.3. Acceptable level of risk

It is the policy of the Group to have a cautious approach to tax risk and to actively avoid it when that option exists, and the UK sub-group follows this approach. When faced with different options we generally opt for the least risky alternative from a tax perspective, while also taking our responsibility as corporate citizens and the responsibility to our shareholders into account.

3.4. Dealings with the HMRC

The UK sub-group always strives to be fair and resolve differences in opinions with HMRC and other governmental organizations in the United Kingdom in a constructive and positive manner.

Compliance with all relevant tax and other disclosure and approval requirements will be adopted and information will be clearly presented to HMRC and other relevant governmental authorities. Openness, collaboration, honesty, and transparency is paramount in all dealings with governmental authorities.

3.5. Publication and Review

This Tax Strategy is published on our website (www.electrolux.co.uk) which is freely accessible to the public. It is reviewed and approved annually by the Board of Directors of Electrolux Investments on behalf of the UK sub-group and updated as necessary to reflect changes in our business operations or tax legislation.

3.6. UK entities covered by this tax strategy

The UK entities that are covered by this strategy are as follows: