Tax Strategy

HDR’s business activities subject the company to a variety of tax laws and regulations. We are responsible for filing and paying corporate income taxes, withholding taxes, employer related taxes, transfer taxes, indirect and other taxes where applicable. The company also collects and remits payroll, indirect and other taxes to tax authorities.

HDR’s Approach to Tax

We are committed to complying with tax laws in a responsible manner with ethical behavior at the center of the way we conduct business. This tax approach aligns with our Business Code of Ethics and Conduct, with our goal to act with integrity and develop business in a sustainable, responsible, and socially inclusive manner everywhere, all the time. We support the following tax principals to direct our management and approach to tax:

Governance

HDR’s Board of Directors is committed to ensuring the company meets its business and financial objectives. The Chief Financial Officer, Corporate Controller and Tax Director support the Board of Directors to ensure the tax approach followed. They are responsible for all taxes that affect the business, ensuring policies and procedures are in place, maintained and used consistently around the world to support the company’s tax approach. As part of this process, they ensure the global tax team has the skills and experience to implement the company’s tax approach and secure the assistance of reputable external tax advisors when necessary.

Compliance

We are committed to complying with all relevant tax laws and regulations and paying the correct amount of tax in each jurisdiction where we operate. We apply diligent professional care and judgement, ensuring all decisions are taken at an appropriate level and are supported by consistent processes, guidelines, and appropriate documentation.

Relationships with Tax Authorities

We seek to build and sustain relationships with governments and fiscal authorities that are constructive and based on mutual respect. We work collaboratively wherever possible with tax authorities to resolve disputes and to reach agreement and certainty on tax positions. On occasion, we will engage with governments in the development of tax laws either directly or through trade associations or other similar bodies.

Tax Planning

We adhere to relevant tax law and seek to minimize the risk of uncertainty or disputes. We engage in efficient tax planning that supports and reflects the commercial and economic activities of the business. Transactions between HDR group companies are at an arm’s length basis. These transactions are in accordance with OECD principals and local transfer pricing rules to ensure adequate profit is earned where value is created. We do not engage in or support artificial tax arrangements. Where tax incentives and exemptions have been implemented by tax authorities to support investment, employment, or economic development, we may seek to apply for and obtain these as intended.

Tax Risks

We prescribe to acceptable levels of tax risk and seek clarity within the law. Our appetite for tax risk is consistent with a desire to achieve certainty in our tax affairs. HDR operates globally, in many countries with project teams from various countries. Processes have been developed to review proposed project activities which could trigger taxation in additional judications. Proposed business activities which cross borders, are analyzed prior to project performance and approval is required before a project can proceed. In order to minimize potential tax exposure and risk, outside advisors are consulted to ensure the company’s understanding and compliance with local jurisdiction tax law. Tax positions are documented on these projects indicating the application and adherence to specific laws and regulations. Employee travel and other activities are monitored to identify items that may trigger additional filing requirements. These internal processes are performed to reduce tax risk and uncertainty. Any potential uncertain tax position risks are escalated to the appropriate level to ensure they are researched and handled appropriately. Tax risk mitigation assists in protecting the company’s brand and reputation.

Transparency

We are committed to a collaborative and transparent approach to tax compliance and tax planning, including our relationships with tax authorities. Our Country-by-Country report is prepared annually detailing the income and taxes paid in each country where we operate. This report is filed with our US tax return and made available for other tax authorities under the protocols of the automatic exchange of information.

This statement of HDR’s approach to tax is reviewed and updated annually. It was approved on April 1, 2024 by the Chief Financial Officer.

This tax strategy was published on April 1, 2024, and HDR Holding Limited and its subsidiaries regard this publication as complying with their duty under paragraph 16(2) Schedule 19 FA 2016 in their financial year ended December 31, 2024.