Capital Return - ATO Class Ruling Obtained

Tower Limited 136 Fanshawe Street, PO Box 90347, Auckland 1142, New Zealand
Freephone: 0800 808 808 Calling from overseas: +64 9 369 2000 tower.co.nz
16 April 2025

Market Information
NZX Limited
Level 2, NZX Centre
11 Cable Street
WELLINGTON
Company Announcements Office
ASX Limited
Exchange Centre
Level 6, 20 Bridge Street
Sydney NSW 2000
AUSTRALIA


ATO Class Ruling obtained

On 20 March 2025 Tower Limited (Tower) implemented its capital return of approximately NZ$45m to
its shareholders, with 1 ordinary share for every 10 ordinary shares held by shareholders on 19 March
2025 (Record Date) being cancelled.

In relation to the capital return, Tower applied to the Australian Taxation Office (ATO) for a Class Ruling
on behalf of its Australian tax resident shareholders (Australian Shareholders) to confirm that:

• no part of the payment received by the Australian Shareholders under the capital return will
be treated as a dividend for Australian tax purposes;
• it will not make a determination under section 45A and section 45B of the Income Tax
Assessment Act 1936 to deem the capital return to be an unfranked dividend paid out of
profits; and
• the share cancellation gives rise to a capital gains tax (CGT) event C2. The effect of CGT event
C2 is that a capital gain arises to the extent that the capital proceeds from the cancellation
exceeds the cost base of the share. Where the capital proceeds are less than the reduced cost
base, a capital loss would arise.

That Class Ruling has now been obtained and a full copy of it is available on the ATO’s website: CR
2025/26 | Legal database [ato.gov.au].

Australian Shareholders are encouraged to review the Class Ruling in full, in particular the
requirements which Australian Shareholders must satisfy to be able to rely on the Class Ruling, which
include that Tower shares must have been held on capital account on the Record Date.

If you are unsure as to the effect of the ATO Class Ruling on your tax position, you should seek
independent taxation advice.

ENDS

This announcement has been authorised by Michael Stiassny, Chair.

For media enquiries, please contact in the first instance:
Emily Davies
Head of Corporate Affairs and Sustainability

Tower Limited 136 Fanshawe Street, PO Box 90347, Auckland 1142, New Zealand
Freephone: 0800 808 808 Calling from overseas: +64 9 369 2000 tower.co.nz
Tower Limited
Mobile: +64 021 815 149
Email: emily.davies@tower.co.nz

For investor enquiries, please contact:
James Silcock
Head of Strategy, Planning and Investor Relations
Mobile: +64 22 395 9327
Email: james.silcock@tower.co.nz