One Franklin Parkway San Mateo, CA 94403-1906 tel (800) 632-2301 franklintempleton.com

December 30, 2016

Subject: Important Tax Information – Templeton Closed-End Funds

Foreign Tax Information Templeton Dragon Fund, Inc., Templeton Emerging Markets Fund, Templeton Emerging Markets Income Fund and Templeton Global Income Fund (each a “fund” and collectively, “the funds”), may invest in foreign securities, which is consistent with each fund’s investment goals. In many cases, foreign countries impose income or withholding taxes on the income derived from these securities. Each fund has elected to pass through to its shareholders the benefit of taxes it paid to the foreign countries on its investments in foreign securities.

The amount reported as Foreign Tax Paid (if any) on your 2016 Form 1099-DIV, Box 6, represents your proportionate share of the foreign taxes paid by the fund. Since foreign taxes are included in gross income, this amount is also included in Box 1a, Total Ordinary Dividends. You may be entitled to claim this foreign tax paid either as a foreign tax credit or as an itemized deduction on your individual federal income tax return.

Simplified Method for Individuals—Election to Claim the Foreign Tax Credit Without Filing Form 1116 You may be eligible to claim the foreign tax credit for the foreign taxes passed through to you by the fund without filing Form 1116 if you meet both of the following conditions: 1. All of your foreign source gross income from fund dividends is “passive category income,” and is reported to you on Form 1099-DIV. 2. The total of all your creditable foreign taxes reported on Form 1099-DIV is not more than $300 ($600 if married filing jointly).

If you meet these conditions, you may be eligible to claim your foreign tax credit by reporting the amount in Box 6 of your Form 1099-DIV directly on your IRS Form 1040. If you have questions regarding your eligibility to make this election or the manner in which to claim the credit, please consult your tax advisor.1

Filing Form 1116 If you choose to claim a foreign tax credit and are required to file Form 1116, you must report your share of foreign taxes paid and foreign source income. You should use the information provided in this letter and on your Form 1099-DIV to calculate your foreign tax credit.

Foreign Tax Deduction If you prefer to take the foreign tax paid as an itemized deduction, you may report the amount in Box 6 of your Form 1099-DIV on your Form 1040, Schedule A. You are not required to complete Form 1116 if you claim foreign tax paid as a deduction on your tax return.

1. If you have foreign taxes that were reported to you on other qualified payee statements (including Form 1099-DIV from other companies, Form 1099-INT or Schedule K-1), you must ensure that all of your gross foreign source income is “passive category income” and that all of your foreign taxes are eligible for the election. If you have any excess foreign tax credits from other years, you will not be able to carry them over or back to the current year unless you file Form 1116, and subject all of your foreign source income and foreign taxes paid to the foreign tax credit limitation. Please see the instructions for Form 1116 or consult your tax advisor. (cont’d.)

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The following table represents the per share amount of Foreign Tax Paid, Foreign Source Income and Foreign Source Qualified Dividends as designated by the various funds to shareholders.

Foreign Source Foreign Source Foreign Tax Income per Qualified Fund Name Record Date Paid per Share Share Dividends per share Templeton Dragon Fund, 9/12/2016 $0.0610 $0.3651 $0.0953 Inc. Templeton Emerging 12/15/2016 $0.0365 $0.2617 $0.1796 Markets Fund Templeton Emerging 9/29/2016 $0.0066 $0.8573 $0.0000 Markets Income Fund Templeton Global Income 8/17/2016 $0.0087 $0.3634 $0.0000 Fund

Foreign Tax Paid per Share is the amount per share available to you, as a tax credit or as a tax deduction.

Foreign Source Income per Share is the amount per share of income dividends attributable to foreign securities held by the fund, plus any foreign taxes withheld. The amounts reported include foreign source qualified dividends that have not been adjusted for the rate differential applicable to such dividend income.2

Foreign Source Qualified Dividends per Share is the amount per share of foreign source qualified dividends, plus any foreign taxes withheld on these dividends. These amounts represent the portion of the Foreign Source Income reported to you that was derived from qualified foreign securities held by the fund.2

We hope this information will help you complete your federal and state income tax returns. If you have any questions about reporting dividends and distributions, which tax forms to use or how to complete them, please contact your tax advisor, the Internal Revenue Service, or your state tax office. If you have any questions about your account, please contact your financial advisor or American Stock Transfer & Trust at (800) 416-5585.

The information contained in this letter is not intended to be a complete discussion of all federal or state income tax requirements. This information cannot be used by an investor to avoid any income tax penalties that may be imposed under the Internal Revenue Code. Investors should seek advice from a financial and/or tax advisor about the potential tax implications of their investments in Franklin Templeton fund(s) based on their individual circumstances.

Franklin Templeton Distributors, Inc.

2. Qualified dividends are taxed at reduced long-term capital gain tax rates. In determining the amount of foreign tax credit that may be applied against the US tax liability of individuals receiving foreign source qualified dividends, adjustments may be required to the foreign tax credit limitation calculation to reflect the rate differential applicable to such dividend income. The rules, however, permit certain individuals to elect not to apply the rate differential adjustments for capital gains and/or dividends for any taxable year. Additionally, investors who qualify for the Simplified Method for Claiming a Foreign Tax Credit (explained on reverse) may not be required to reduce their credit to reflect the qualified dividend rate differential. Please consult your tax advisor and the instructions for Form 1116 for more information.

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