DOW CHEMICAL CO /DE/

NOTE 6 –INCOME TAXES

As the financial statements for Dow Inc. and TDCC are substantially similar, including the provision for income taxes, the following income tax discussion does not include reference to TDCC's provision for income taxes or its effective tax rate.

The Company's effective tax rate fluctuates based on, among other factors, where income is earned, the level of income relative to tax attributes and the level of equity earnings, since most earnings from the Company's equity method investments are taxed at the joint venture level.

The following table provides effective tax rate information for Dow Inc. for the three and six months ended June 30, 2026 and 2025:

The provision for income taxes for the three months ended June 30, 2026 was favorably impacted by changes in the Company’s ability to utilize foreign tax credits associated with cash proceeds received in March 2026 related to the Nova Chemicals Corporation ethylene asset matter, partially offset by tax charges related to changes in uncertain tax positions. See Note 12 for additional information about the ethylene asset matter. The provision for income taxes for the six months ended June 30, 2026 was primarily impacted by the geographic mix of earnings. The provision for income taxes for the three and six months ended June 30, 2025 was unfavorably impacted by the recording of valuation allowances in certain foreign jurisdictions of $242 million and losses attributable to jurisdictions for which no tax benefit can be recognized, partially offset by a tax credit of $89 million related to the sale of a portion of the Company's membership interests in Diamond Infrastructure Solutions, resulting in a negative effective tax rate for both periods.