1. 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

2. 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

3. 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.

4. 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

5. Tax return support over assignment lifecycle1 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

6. 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

7. 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

8. 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