Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 120

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 120
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      |   (3 | ) |
| Adjustments in respect of deferred income tax of previous                     
 years                                                                         |     |      |  (11 | ) |     |      |    1 |   |     |      |    6 |   |
| Other                                                                         |     |      |    7 |   |     |      |   11 |   |     |      |    7 |   |
| Income tax expense                                                            |     |      |   80 |   |     |      |   84 |   |     |      |  192 |   |
| Effective tax rate (%)                                                        |     |      |   26 | % |     |      |   11 | % |     |      |   74 | % |

| (1) | This amount is related to current tax adjustments in the U.S. to mitigate cash tax relating to the                                                                                
 Base Erosion and Anti-Abuse Tax, Canadian non- deductible penalties, and a tax adjustment relating to dividends on preferred shares, treated as interest for accounting purposes. |

Global Minimum Tax Act In response to the OECD Pillar Two Model rules, Canada enacted the Global Minimum Tax Act (GMTA) on June 19, 2024. The GMTA provides for a minimum tax of 15 per cent to be applied on a jurisdictional basis. The adoption of the GMTA did not have a material impact on the Company’s tax expense. IAS 12 contains a mandatory temporary exception to recognizing and disclosing information about deferred taxes related to Pillar Two. The Company has applied this exception.

| F41 |     | TransAlta Corporation |     | 2024 Integrated Report |

Notes to the Consolidated Financial Statements II. Components of Income Tax Expense The components of income tax expense are as follows:

| Year ended Dec. 31                                                             |     | 2024 |     |   |     | 2023 |      |   |     | 2022 |     |   |
|:-------------------------------------------------------------------------------|:----|:-----|----:|:--|:----|:-----|-----:|:--|:----|:-----|----:|:--|
| Current income tax expense                                                     |     |      | 143 |   |     |      |   50 |   |     |      |  65 |   |
| Deferred income tax (recovery) expense related to the origination and reversal 
 of temporary differences                                                       |     |