Our tax principles

Tax compliance

• Lilly is committed to complying with all applicable tax laws, rules, regulations and related disclosure requirements and pays the correct amount of tax due based onsuch tax laws, rules and regulations of the jurisdictions in which we operate.
• Lilly interprets applicable tax laws using relevant guidance and applies diligent professional care and judgment to arrive at well-reasoned conclusions, includingdiscussing such conclusions with tax authorities where appropriate.
• Lilly seeks certainty in its tax conclusions but, where tax law is unclear or subject to interpretation, will seek written advice as appropriate to understand andminimize risk.
• Lilly ensures all material tax-related conclusions are made at the appropriate level and supported with documentation that evidences the facts, determinations andrisks involved.
• Lilly’s tax risk is integrated within the Company’s enterprise risk management and compliance framework.

Tax management

• Lilly manages its tax affairs efficiently to reduce uncertainty, enhance shareholder value, and maintain global competitiveness, always guided by our Lilly brand and business integrity.
• Lilly complies with the tax laws of the countries in which it operates including claiming properly available allowances, deductions, reliefs, incentives, exemptions and credits where it is beneficial and appropriate to do so.
• Lilly aligns its tax affairs with its commercial investments and business strategies with significant tax risks overseen within the Company’s enterprise risk management and compliance framework.

Tax relationships

• Lilly seeks to have open and constructive working relationships with tax authorities and government bodies, all based upon our Lilly values of integrity, excellence, and respect for people, to minimize disputes and risks.
• Lilly enters into continuous audit programs and agreements, where appropriate, to enhance certainty on the tax treatment of our business.