5. Tax Reporting 5.1 Overview 2021 General remarks # Tax reporting intends to provide meaningful information to internal and external stakeholders about where, for what and to what amount we are taxed. To accomplish that: • Our tax rep orting follows the principles of accuracy and timeliness and is compliant with internal and/or external reporting obligations (e.g. based on local, IFRS, or Solvency II regulations). • We pr ovide context and verbal explanations in addition to mere numbers to increase understandability and to avoid misinterpretations where necessary. Taxation of Allianz business activities Our total tax contribution can be split into taxes borne by Allianz (as a taxpayer) and taxes collected by Allianz and remitted to tax authorities specifically for our policyholders, employees or service providers. Accordingly, taxation of our business activities can be described as follows: Taxes borne by Allianz We mainly generate taxable profits from insurance and asset management activities. As an insurance company, we are offering policyholders insurance coverage for payment (i.e. premiums) whereby the most common forms of insurance coverage relate to life/health and property/casualty insurance. Our taxable profits stem from premiums received and investment income generated, less administration/ commission expenses and settled claims/ guarantees. Under the umbrella of our Allianz asset management units, we also manage client funds through active investment strategies. Here, our taxable income results especially from fees received for asset management activities. The profits from our insurance and asset management operations are subject to tax at the income tax rates applicable in the country in which such profits are generated. Additional costs result from other taxation e.g. non- recoverable value added tax (VAT) on purchased services, employer share in wage taxes, financial transaction tax, stamp duties and other taxes. Taxes collected and remitted by Allianz We are obliged to collect and remit taxes for certain activities. The most relevant taxes collected and remitted relate to purchased insurance services by the policyholder (insurance premium taxes), salaries paid to our staff (wage taxes) and investment return payments to policyholders and other customers (policyholders/ other customer taxes). Enhancing reporting of taxes borne and collected by Allianz We are continuously improving our reporting processes in order to be able to increase our transparency with respect to taxes borne and taxes collected split by countries. In 2021 the reporting granularity was enhanced by including additional per country information related to tangible assets and current income taxes for the current fiscal year. For the reporting of cash taxes borne and collected the level of detail was increased. In order to support comparability of reported data, to facilitate the debate on common and standardized total tax contribution metrics and to encourage other companies to follow a common total tax contribution approach, we regularly contribute to the Total Tax Contribution studies commissioned by the European Business T ax Forum (EBTF) 11 . As part of our commitment to the World Economic Forum’s Stakeholder Capitalism Metrics 12 we disclose our total tax contribution to public finances through direct and indirect taxes in order to be fully transparent about our economic value generated for the countries where we operate. 11 Total-Tax-Contribution-A-st udy-of-the-largest-compa nies -in-Europe-2021- Repor t (ebtforum.org). 12 For further details on the Stakeholder Capitalism Metri cs, pl ease see the WEF  web site. GRI 207–3 Value Added Taxes Insurance Premium Taxes Taxes on Payments to Policyholders/ Other Customers Wage Taxes and Social Security Contributions Other Taxes € 11,670 mn 5,958 1,270 446 2,916 1,080 Taxes collected by Allianz € mn Income Taxes Paid Value Added Taxes Insurance Premium Taxes Wage Taxes and Social Security Contributions Other Taxes € 6,277 mn 3,050 464 951 1,607 205 Taxes borne by Allianz € mn Total amount of recoverable VAT € 895 mn Allianz Group Tax Transparency Report 2021 6