BTN’s Tax Principles

PT Bank Tabungan Negara (Persero) Tbk ("BTN") is committed to responsible, transparent, and compliant tax practices in accordance with the laws and regulations of the Republic of Indonesia. As a state-owned public bank, BTN upholds high standards of governance, integrity, and accountability in managing all tax-related obligations. The Bank conducts its tax affairs in good faith, ensuring that tax outcomes are consistent with the intended purpose of applicable tax laws and supported by genuine commercial activities. Our tax approach is guided by the following principles:

Full Compliance With Indonesian Tax Laws

BTN complies with applicable Indonesian tax laws and regulations by fulfilling all statutory tax obligations accurately, transparently, and on time. The Bank ensures that its tax practices are aligned with the purpose of the applicable tax framework and maintains accurate, timely, and truthful tax filings and disclosures in accordance with applicable regulations, including:

• Law No. 7/2021 – General Tax Provisions and Procedures (KUP)

• Article 18 of the Income Tax Law – Anti–Tax Avoidance provisions

• PMK 70/PMK.03/2017 – Automatic Exchange of Information (AEOI)

• PMK 81/PMK/2024 - Implementation of the Core Tax Administration System

BTN ensures accurate, timely, and truthful tax filings and disclosures in accordance with these regulations.

No Use of Artificial or Non-Substantive Tax Structures

BTN does not adopt tax planning structures that lack commercial substance or are undertaken primarily to obtain tax benefits. All entities and arrangements within BTN must be supported by a demonstrable economic rationale. In line with this principle, BTN does not establish or rely on shell companies, conduit entities, or other artificial structures that do not correspond to actual business operations. This policy aligns with:

• General Anti-Avoidance Rule (GAAR) – Article 18(3) of the Income Tax Law, and

• Beneficial Ownership Rule – PER-13/PJ/2018,

BTN does not use shell companies, conduit entities, or artificial arrangements without real business activity.

Zero Tolerance for Tax Avoidance Practices

BTN does not use secrecy jurisdictions, tax havens, opaque legal structures, or aggressive tax planning schemes to avoid tax. All tax practices must support ethical conduct, regulatory compliance, and responsible contribution to Indonesia’s fiscal system. This is reinforced by:

• Anti–Tax Avoidance provisions under the Income Tax Law,

• AEOI implementation under PMK 70/PMK.03/2017.

Good Corporate Governance in Tax Management

BTN is committed to maintaining transparent tax disclosures, complete and auditable documentation, and open cooperation with tax authorities, in line with applicable Indonesian regulatory requirements and good governance practices. Tax management is integrated into BTN’s overall governance framework, with the Board of Directors providing oversight and approval of key tax policies and compliance processes to ensure alignment with regulatory expectations and the Bank’s long-term objectives.