Tax strategy

The Company’s general approach to tax matters

• Strict compliance with all applicable tax laws of the Russian Federation and other countries of operationThe Group’s foreign entities interpret applicable tax laws and resolve controversial tax issues independently.
• Paying taxes and making other statutory payments to governments in a full and timely manner
• Disclosing information relevant to stakeholders on the corporate portal
• Zero tolerance for non‑transparent corporate structures intended to conceal income and avoid taxation
• Applying market prices for tax purposes in intra‑group transactions
• Complying with the core principles set out in the Organisation for Economic Co‑operation and Development (OECD) Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations
• Applying a conservative approach to resolving all ambiguous or disputable tax matters arising in the jurisdictions where the Group operates
• Zero tolerance for aggressive tax planning schemes

Key internal documents

The Norilsk Nickel Group’s Tax Strategy Policy outlines the operating principles of the Company’s tax function and addresses matters related to the management of tax burden and tax risks.

Taxation: allocation of responsibilities

The Management Board approves the tax strategy, which is developed, updated as needed, and overseen by the Director of the Tax Department. This functional unit is also responsible for managing tax risks of Russian business units. Risk factors related to additional taxation and penalties, contingent tax liabilities, and the external auditor’s opinion confirming the accuracy of tax information are disclosed in Nornickel’s Consolidated Financial Statements for 2024. For a detailed governance structure with allocation of responsibilities for tax matters, please see Nornickel’s 2023 Sustainability Report.

Relations with tax authorities

The Group’s interaction with tax authorities includes tax audits, advisory support on applicable laws, and the conclusion of pricing agreements.

The real‑time tax monitoring system enables the Company to regularly grant tax authorities automated access to its tax and accounting data, obtain reasoned opinions during the monitoring process, and accelerate risk resolution.