Current report 12/2020 .

25 February 2020

Information on estimated effective tax rate for 2019

Legal basis: Article 17 (1) MAR – confidential information.

Content of the report:

In order to ensure a transparent and effective information policy, the Management Board of Ten Square Games S.A. (the “Company”) informs that it has estimated the effective tax rate using the IP BOX relief for the first time. The estimated tax rate for 2019 amounted to 9,4% of the Company’s separate gross profit. 

The IP BOX relief involves taxation of income obtained from qualified property rights at the rate of 5% instead of the standard 19%. However, the Company’s Management Board stresses that corporate income tax regulations are subject to frequent changes, as a result of which there is often no reference to established regulations or legal precedents. The existing, new regulations also contain ambiguities that cause differences in opinions on the legal interpretation of tax regulations both between state bodies as well as between state bodies and companies. The tax settlement for 2019 may in the future be subject to inspection by the authorities which are empowered to impose high penalties, and any potential additional amounts of liabilities established as a result of such inspection must be paid together with high interest. Tax settlements may be audited for a period of five years. As a result, the amounts shown in this report, as well as in the financial statements, may change at a later date, once they have been finally determined by the tax authorities.

The Management Board also informs that this report contains preliminary, unaudited data, which may differ from the final data. The final information on the tax rate will be published in the interim report. The nearest periodic report submitted by the Company is the separate and consolidated annual report for 2019, which will be published on March 23rd 2020.