PAZ CORP S.A. - Information on the Substitutive Tax for Final Taxes ("ISFUT")

Dear Participants,

The Board of Directors of Paz CORP S.A. (The "Corporation" or "Paz," on a meeting held on April 4, 2023, agreed to call an Extraordinary Shareholders' Meeting ("the Meeting") at 09:00 a.m. on April 26, 2023. Due to the distribution of dividends that will be proposed in the Meeting, the Corporation provides the following information regarding the substitutive tax for final taxes regime for the accumulated profits in the Corporation's Taxable Profits Funds ("ISFUT.") This optional regime was valid until the last business day of April 2022 for the balance of the accumulated profit until December 31, 2016, and that have not been taxed by December 31, 2021, and registered in the Corporation's FUT registry at December 31, 2016.

For this, the Corporation informs its shareholders of the following regarding the ISFUT regime and the procedure to be subject to it:

1. According to provisional article 25 of Law 21210, the Corporation was able to subject its taxable profits accumulated until December 31 of 2016, which have not been taxed with final taxes, to the payment of the ISFUT.
2. After the ISFUT has been paid, it is understood that the profits subject to that regime have completely met their final taxation requirements and may be withdrawn or distributed as needed without being subject to the orders of allocation considered in the Tax Income Tax Law ("LIR.")
3. In this sense, and as agreed in the General Shareholders' Meeting held on April 20, 2022 ("the 2022 Meeting"), the Corporation subjected part of its accumulated taxable profits that it kept registered for the total amount of M$35,877,657 to the payment of the ISFUT. For filing and paying the ISFUT, Paz has determined a credit effective rate of the first category tax (or "TEF") of 0.2693, allocated to the taxable profits subject to this regime. Due to the above, the payment of the ISFUT totaled M$ 4,000,000. Similarly, in the 2022 Meeting, the shareholders agreed that the amounts paid by the Corporation for the ISFUT that will be chargeable to future dividend distributions will have an additional charge associated with the alternative use of funds corresponding to the interest equivalent to the return obtained by the Corporation in the term deposits in pesos taken during the period between May 1, 2022, and the last day of the month before the date set for the payment of the corresponding dividend (the "Charge").
4. Regarding the amount allocated to the ISFUT referred to in item 3 above, the Corporation withheld M$665,263, corresponding to those shareholders that subjected their dividend distribution agreed in the Meeting of 2022 to ISFUT, due to which the balance of M$3,334,737 plus the Charge pending for allocation to date.
5. Regarding the payment of the dividends that will be subjected to the knowledge and decision of the shareholders, and prior to the date set for the payment of such dividends, the shareholders that wish to be subject to the ISFUT regime will be provided a form that describes the procedures to follow to opt to that regime.
6. If shareholders instruct the Corporation to pay the dividend to which they are entitled, chargeable to the profits subject to the ISFUT, the amount to be withheld on the dividend to be paid to those shareholders for the ISFUT if the proposed dividend of 42 pesos per share is approved, will be of 5.1729 pesos per share, for their corresponding balance to be distributed.
   The withholding amount comprises the ISFUT paid by the Corporation, the ISFUT equivalent to 4.6826 pesos per share, and the Charge, as agreed by the 2022 Meeting, equivalent to 0.4903 pesos per share.
7. The profit subject to the ISFUT regime that is not fully distributed to the shareholders due to the distribution of dividends to be approved by the Meeting to be held on April 26, 2023, will be kept registered in the exempt income registry of the Corporation ("REX") and may be distributed in the following years, as needed, without being subject to the orders of allocation considered in the LIR.
   The ISFUT filed and paid by the Corporation, in the part that had not been allocated to the distribution approved by the Meeting, constitutes and will constitute an accounts receivable in their favor, which will be allocated to the dividend distributions agreed later, and in the corresponding ratio, for those shareholders of the Corporation that decide to choose to receive dividends chargeable to the balance of the profit subject to the ISFUT and registered in the REX registry. That accounts receivable will be subject to the corresponding Charge according to the calculation formula approved in the 2022 meeting.
8. Finally, it is informed that the shareholders that wish to exercise this power must send the "ISFUT PAYMENT INSTRUCTION FORM" to the Corporation, which will be made available to the shareholders on the following website  https://www.paz.cl/GobiernoCorporativo#junta-accionista once the meeting has concluded, and a signed copy of those instructions must be sent to the email or mail addresses described by May 19, 2023, at 5:00 p.m.
   Note: The shareholders that keep their shares with a brokerage firm (or through a custodian bank) must request them to send the ISFUT payment instruction form to the Corporation, as per the instructions included.

THIS INFORMATION, TOGETHER WITH THE MENTIONED INSTRUCTIONS, CAN BE FOUND ON THE FOLLOWING WEBSITE: https://www.paz.cl/GobiernoCorporativo#junta-accionista.
PAZ DOES NOT ISSUE ANY OPINION ON THE CONVENIENCE OF CHOOSING A SPECIFIC TAX TREATMENT FOR THE ISSUES ADDRESSED IN THIS DOCUMENT, DUE TO WHICH IT IS NOT RESPONSIBLE FOR THE DECISIONS SHAREHOLDERS MAY MAKE IN THOSE REGARDS.

PAZ CORP S.A. ISFUT Instructions Form

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Kind regards,
DEPÓSITO CENTRAL DE VALORES S.A.,
DEPÓSITO DE VALORES