5. Tax Reporting 5.2 Income Taxes 2021 Income taxes according to IFRS Group financials 2021 13 √ With income taxes amounting to 2,415 million Euro the effective tax rate is at 25.4% compared to an expected tax rate of 24.3% 14 . In the following graphic, we give an overview of the profit before income taxes, expected income tax, effective income tax based on our IFRS Group financials as well as income taxes paid for our five countries mostly contributing to the Group’s pre-consolidated income. A respective overview for the majority of all countries and the Allianz Group in total, can be found in the table provided in section 5.4 together with other Country-by- Country data. Significant (> absolute 3%p) deviations of the effective tax rate from the expected tax rate arise in these countries especially due to the following reasons: • Germany: the effective income tax expense is higher than the expected income tax expense resulting in an effective tax rate of 49.2%. The higher effective tax rate compared to the expected tax rate of 31% is predominately based on non-tax deductible expenses, non- creditable withholding taxes and add backs for trade tax purposes. • USA: the 2021 pre-tax income was significantly impacted by expenses for a litigation provision for Structured Alpha. As such the expected income tax expense was overcompensated by tax credits for windfarm investments resulting in a negative effective tax rate of -9.8% compared to an expected tax rate of 21%. • France: only minor differences between expected and effective income tax expense and rates. • Italy: the higher effective tax rate of 32.3% compared to the expected tax rate of 24% is driven by local income taxes (IRAP). • Ireland: the higher effective tax rate of 18.5% compared to the expected tax rate of 12.5% is significantly driven by the application of different tax rates on branch results and losses for which no deferred tax assets were recognized. Income taxes paid √ The income tax expense of 2,415 million Euro recorded in our 2021 IFRS Group financials is not equal to the income tax paid in 2021 which amounts to 3,050 million Euro. This is due to a number of reasons: The income tax expense is based upon the accrual accounting concept that allows for the allocation of a tax expense to the same period in which the underlying taxable item is realized. Contrary to that, income taxes paid during a financial year may include payments or refunds relating to prior financial years, and may exclude final payments or refunds that occur in the next financial year. Furthermore, the profit before income taxes in our financial statements may differ from the taxable income reported in tax returns. These differences result in deferred taxes in the financial statements to reflect any future taxable events (2021: deferred tax benefit 1,221 million Euro). Additionally, certain income taxes have to be booked directly in equity in case the underlying results have been recognized in equity as well. 1 Profit before income taxes based on IFRS consolidated figures without intercompany profit/loss/reinsurance elimination. 2 Expected income taxes based on IFRS profit before taxes multiplied with country specific corporate income tax rate. 3 Income tax expense according to IAS 12 (current and deferred income taxes). 4 Amount of income taxes paid during the fiscal year 2021 (including payments for previous fiscal years). 13 Reporting period covered 01.01. – 31.12.2021. 14 As published in our Annual Report 2021 (p. 164). Ireland USA France G e rma n y Income tax profile per country (mostly contributing to Group’s pre-consolidated income) 2,128 660 1,047 736 362 45 67 61 884 186 (86) 980 810 194 262 246 753 214 208 203 Profit before Income Taxes 1 Expected Income Taxes 2 Effective Income Taxes 3 Italy Income Taxes Paid 4 GRI 207–4 Allianz Group Tax Transparency Report 2021 7