Group notes

Income taxes include both current and deferred taxes. A current tax liability or asset is recognized for the estimated tax payable or refundable for the current year or prior years.

Deferred tax is recognized using the balance sheet liability method; based on differences between the values reported in the balance sheet and their values for taxation, referred to as temporary differences. To calculate the deferred tax asset or liability, the temporary differences are multiplied with the enacted or substantively enacted tax rates for the relevant tax jurisdictions. Temporary differences attributable to the following assets and liabilities are not provided for: the initial recognition of goodwill, the initial recognition (other than in business combinations) of assets or liabilities that affect neither accounting nor taxable profit, and differences related to investments in subsidiaries and associated companies to the extent that they will probably not reverse in the foreseeable future, and for which the Company is able to control the timing of the reversal of the temporary differences. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized.

Current and deferred tax assets and liabilities are netted when there is a legally enforceable right to do so, and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

The legal entities of the Group are frequently subject to audits by tax authorities in accordance with standard practice in the countries where the Group operates. In instances where the tax authorities have a different view on how to interpret the tax legislation, the Group makes estimates as to the likelihood of the outcome of the dispute, as well as estimates of potential claims which may vary from actual outcomes.

Epiroc is applying BEPS Pillar 2 in all countries where Epiroc has subsidiaries. Epiroc and each of its subsidiaries have reported tax rates of at least 15% in 2025 and Epiroc has not incurred any top-up taxes under BEPS Pillar 2.