UK Tax Strategy

Introduction

Atlantica Sustainable Infrastructure plc (Atlantica) has published its Tax Strategy to better communicate how tax policies are managed.

Atlantica’s Tax Strategy has been published in compliance with Schedule 19 of the U.K. Finance Act 2016, which requires large groups to publish their U.K. tax strategy.

Our Tax Strategy is not designed to be an operational manual with detailed instructions on the execution of tax processes. It should be read in conjunction with our Corporate Governance Policies.

Scope

The drivers and objectives of our Tax Strategy are focused on tax operations, reporting and compliance of Atlantica and its subsidiaries. This document applies to all corporate income taxes, indirect taxes, employment taxes, and tax accounting.

Our Tax Strategy is applicable to directors, officers, finance and administration personnel, tax professionals employed by Atlantica, and other stakeholders (e.g. tax advisors, service providers, etc.).

General principles of our Tax Strategy

Atlantica is committed to comply with all tax obligations and full disclosure to the tax authorities. Compliance for Atlantica means, paying the right amount of tax in the right place at the right time.

Our tax affairs are managed on a day to day basis taking into consideration our Corporate Governance Policies.

Attitude towards tax planning

Our business activities are carried out in line with the tax laws of the countries where Atlantica operates. We do not take an unreasonable attitude on our interpretation of tax legislation. Atlantica always works within letter and spirit of local laws.

We do not engage in aggressive tax planning and do not participate in artificial tax avoidance schemes to reduce our U.K. tax liability. All tax planning developed by Atlantica is supported by economic arguments.

Atlantica collaborates with external tax advisors where there is need for tax guidance and support (e.g. corporate restructurings, benchmark analysis, transfer pricing documentation, among others).

Tax risk management and tax governance

We have implemented risk management tools to identify, monitor and mitigate any potential tax exposure.

Our tax risk management tools are subject to a regular review by the internal audit department to confirm their effectiveness.

Atlantica’s tax department trains and supports all departments that manage or process matters with potential tax consequences.

Level of tax risk

Atlantica’s tax matters are always managed in accordance to Organization for Economic Cooperation and Development (OECD) guidelines, and complying with the tax legislation in force in those countries where we operate. Our intragroup and related party transactions are also conducted following arm’s length principles set by OECD.

Working with tax authorities

Atlantica seeks a transparent, constructive and strong relationship with HM Revenue & Customs to resolve any disputes in a timely manner by working collaboratively with its authorities.

We engage with tax advisors where a particular tax law or regulation is unclear or subject to interpretation in order to be fully compliant. By working with external tax advisors Atlantica ensures a proper interpretation of our tax matters complying with tax laws.

The tax strategy is in respect of the year ended 31 December 2023.