CHAPTER 3 We advance in sustainable performance

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REPORTING OF TAX RISKS TO THE HIGHEST GOVERNANCE BODY

The following activities are carried out in order to report tax risks to the Board of Directors:

· Updating of tax risks in the 'Risk Maps for Cepsa and for all its business units and lines of business. · Ex ante identification of the impact of tax risks affecting the definition or implementation of the company's strategies. · Mandatory inclusion of the analysis of tax risks associated with new investments. · Preparation of tax risk management or mitigation plans.

We want our local communities to gain insight into our business and our contribution to social well-being. So we prioritise working with governments and civil society to enhance the transparency of our activities.

We seek to establish a constructive relationship with the tax authorities in the territories where we operate so as to achieve the highest level of consensus and alignment in the interpretation of applicable legislation.

We take part in initiatives proposed by the tax authorities that can improve our understanding and save efforts for all those involved.

In the event of differences in interpretation, we offer the tax authorities our technical viewpoint and the available documentation so as to foster collaboration, understanding and amicable agreements.

TAX TRANSPARENCY

Transparency is an essential value in our conduct, so we have made a transparency pledge to allow the different social agents to become familiar with our fiscal policy and the specific outcomes. We publish the required tax-related information in accordance with the regulations and voluntary agreements to which we are a party.

We also publish and submit annually to the tax authorities our 'Country-by-Country Report' detailing the information required by applicable prevailing tax regulations, which we include as an appendix to this integrated report.

TAX CONTRIBUTION

In 2021, Cepsa paid a total of 370 million in corporate income tax, as shown below by country:

3.7.2 Good tax practices and cooperation with public administrations