LyondellBasell Industries N.V.

9. Income Taxes

For interim tax reporting, we estimate an annual effective tax rate which is applied to the year-to-date ordinary income. Tax effects of significant, unusual, or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. Our effective income tax rate fluctuates based on, among other factors, changes in pre-tax income in countries with varying statutory tax rates, changes in valuation allowances, changes in foreign exchange gains or losses, the amount of nontaxable or nondeductible items, changes in unrecognized tax benefits associated with uncertain tax positions and changes in tax laws.

Our effective income tax rate for the third quarter of 2026 was 19.4% compared to 3.2% for the third quarter of 2025. The higher effective income tax rate for the third quarter of 2026 was primarily due to changes in earnings in countries with varying statutory tax rates coupled with non-cash impairments recognized discretely in the third quarter of 2025, for which there was largely no tax benefit, that increased the effective income tax rate by 36.2 and 7.8 percentage points, respectively. These increases were partially offset by the establishment of a valuation allowance against deferred tax assets in the United Kingdom in the third quarter of 2025 that decreased the effective income tax rate by 28.0 percentage points.

Our effective income tax rate for the first nine months of 2026 was 22.1% compared to (13.6)% for the first nine months of 2025. The increase was primarily attributable to non-cash impairments recognized in 2025, for which there was largely no tax benefit, changes in earnings in countries with varying statutory tax rates, and the largely nondeductible divestiture of select European assets and related businesses in 2026, which increased the effective income tax rate by 36.7,12.9 and 6.4 percentage points, respectively. These increases were partially offset by the establishment in 2025 of a valuation allowance against deferred tax assets in the United Kingdom, for which no tax benefit could be recognized, and fluctuations in foreign exchange gains and losses, which decreased the effective income tax rate by 15.0 and 3.9 percentage points, respectively.