IBERSOL | Integrated Management Report - 2024

INTEGRATED MANAGEMENT REPORT 2024 8. Income tax Accounting policies Current tax: The estimated tax (IRC) was calculated under the Special Taxation Regime for Groups of Companies (RETGS), Ibersol having decided that the expense/income to be recognized in the subsidiaries will be reflected in other current liabilities/assets with the parent company, the tax savings being reflected in the parent company’s accounts. Income tax for the period includes current and deferred taxes. Income taxes are recorded in the income statement, except when they relate to items that are recognized directly in equity. The amount of current tax payable is determined on the basis of profit before tax, adjusted in accordance with the tax rules in force. Uncertain tax positions The amount of the estimated assets and liabilities recorded in connection with tax proceedings is the result of an assessment by the Company as at the date of the statement of financial position in relation to potential differences of understanding with the Tax Authorities. With regard to the measurement of uncertain tax positions, the Company takes into account the provisions of IFRIC 23 - “Uncertainty about income taxes”, namely in the measurement of risks and uncertainties in the definition of the best estimate of the expense required to settle the obligation, by weighing up all possible controlled outcomes and associated probabilities. Deferred tax: Deferred taxes are recognized in full using the liability method and calculated on temporary differences arising from the difference between the tax base of assets and liabilities and their values in the financial statements. However, if deferred tax arises from the initial recognition of an asset or liability in a transaction that is not a business combination or that at the date of the transaction affects neither the accounting result nor the tax result, it is not accounted for. Deferred taxes are determined by the tax (and legal) rates enacted or substantially enacted at the date of the statement of financial position and which are expected to apply in the period in which the deferred tax asset is realized or the deferred tax liability is settled. The nominal base tax rate in Portugal is 20%. Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available to use the temporary difference. The Company offsets deferred tax assets and deferred tax liabilities if, and only if: (a) it has a legally enforceable right to set off current tax assets against current tax liabilities; and 507