International Tax & Global Mobility: Improving Employee Experience & Maintaining Corporate Tax Compliance Helen Bradshaw, Global Share Plan Manager – AstraZeneca Pascal Dutler, Client Relationship Manager – Equatex AG ifsProShare Conference 2015

Background to Modern Mobility at AstraZeneca An Internationally Mobile employee creates a more complex tax position for both the Individual and the Company, particularly in respect of Share Awards With the changing footprint and additions to the AstraZeneca Group we have an increasing number of ‘Mobile’ Individuals. These can be categorised as follows: Short term assignments International assignments One Time relocations Business travellers Globally mobile To meet our tax reporting obligations it is essential for us to effectively utilise our HR data to assure compliance on behalf of individuals and the company

Our Approach at AstraZeneca Employment status when Share Award is granted Definition of employment status Tax treatment International Assignment (Standard, Short Term and Globally Mobile) Individual is on a tax equalised International Assignment, during the vesting period. The entire Award will be tax equalised. Award will be subject to hypothetical tax withholding at the highest marginal rate of their home country, AZ meet actual tax liabilities. One Time Relocations, Business Travellers Individual transfers internationally within the AZ Group on local terms, during the vesting period. The Award is not equalised for any portion of the vesting period.  Award will be subject to blended tax rate. Individual is responsible for any additional taxes due. Domestic (local) Employee Individual spends the entire vesting period in a single country on local terms. The Award is not equalised for any portion of the vesting period.  Award will be subject to local tax rate. Individual is responsible for any additional taxes due.

Our Partners To maintain compliance and improve employee experience requires collaboration between our partners: HR Data – Workday Share Plan Administrators – Equatex Payroll – NgA and a number of local providers Global Mobility Tax Return Services – PwC Legal and Tax Due Diligence – Solium GSP HR data is shared via a number of systems to accurately record, report and analyse individual data and tax requirements for c.11k individuals across 62 countries Typically we have 300 assignees and 100 international transfers

Tax return support over assignment lifecycle 1 2 3 4 5 6 7 Year Standard assignee (3 years) Home Host Expat Expat Expat Expat Expat Bonus Standard assignee with LTI Home Expat LTI Expat LTI LTI LTI Host Expat Expat Expat Bonus LTI LTI International transfer to affiliate (TAF) Home OTR Host OTR International transfer with LTI Home OTR LTI (TAF) LTI (TAF) LTI (TAF) Host OTR LTI (TAF) LTI (TAF) LTI (TAF) Assignee then International transfer with LTI Home Expat LTI Expat LTI LTI OTR LTI (TAF) Host Expat Expat Expat Bonus LTI OTR LTI (TAF) Key LTI = Share Award OTR = One Time Relocation TAF = International Transfer to Affiliate Expat and Bonus LTI and TAF OTR 5

Taxation methodologies in EquatePlus EquatePlus offers AstraZeneca the right balance between efficient taxation handling and highly accurate tax calculation Complexity of Taxation Special Tax Tax Rate on Allocation Tax Rule: Allocation Level Tax Rule: Participant Level Multiple Tax Rates Individual Tax Rate Tax at Country Level Accuracy of Taxation Marginal Tax rates Accurate Tax rates Special Cases

Tax withholding for mobile employees CORPORATE CLIENT EquatePlus TAX PROVIDER Participant demographic changes Leaver Information Grant Data Mobility Tracking Employee lifecycle Transaction Details 1 2 Interface Files Reports Calculation of tax amounts Payroll Instructions Payroll report Taxable event finalised in EquatePlus Create Order Confirmations Cash to participants 3 Tax amount data Payroll A 5 Taxes to payrolls Payroll B Create Tax Statements Payroll C Process executions Create Order Confirmations Publish Statements Cash to participants 4 Publish Statements Statements

EquatePlus – a platform for tax collaboration EquatePlus is designed to simplify AstraZeneca’s taxation process by: Offering various methods of calculating tax – based on employees complexity Gathering relevant employee data from multiple sources in one single platform Tracking employment history and mobility of each employee Providing tax consultants and other parties direct access to our platform Distributing tax money to multiple payrolls Increasing efficiency when dealing with highly complicated tax calculation