BBVA, aligned with the Sustainable Development Goals (SDGs), also in taxation
True to its commitment to customers and clients, shareholders and employees and in compliance with its fiscal transparency pledge, BBVA has released its Total Tax Contribution report, as it voluntarily does every year since 2011. BBVA’s fiscal strategy is aligned with the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project and the UN Sustainable Development Goals and the protection of Human Rights.
As BBVA chairman Carlos Torres Vila pointed out in a letter at the bank’s latest Annual General Meeting, paying taxes contributes to “the development of these countries by providing the funds required to finance infrastructure or healthcare investments, and, especially, by helping foster equal opportunities through a better education.”
BBVA makes a substantial economic and social contribution through: the payment of dividends to its shareholders, wages to its employees, and the payment of taxes to fund public finance in the different countries in which it operates. Thus, the bank not only makes an important contribution to Public Administrations through its own taxes, but also by collecting the applicable taxes from third parties as a result of the economic activities it undertakes, and through its collaboration with the different tax agencies.
Carlos Torres Vila: Paying taxes contributes to “the development of these countries by providing the funds required to finance infrastructure or healthcare investments, and, especially, by helping foster equal opportunities through a better education.
€9.29 billion: BBVA’s total tax contribution in 2019
To calculate the total tax contribution over a fiscal year, BBVA applies the PwC’s Total Tax Contribution methodology (or TTC), which factors in the different taxes ( companies, VAT, contributions to Social Security, etc.) that a company or corporation pays as a result of its own activity and the taxes it manages acting as intermediary on behalf of the tax agencies in each country or region in which it operates.
BBVA Group’s global tax contribution amounted to €9.29 billion in 2019: €3.7 billion in own taxes and €5.59 billion, in third-party taxes. Of the €3.7 billion taxes paid by BBVA, €1.79 billion corresponded to the Corporate Income Tax. This means that in 28 percent of the Group’s earnings before taxes in 2019 (€6.4 billion) were used to pay for this tax.
By geography, in 2019 BBVA paid almost 24 percent of its taxes in Spain, 26 percent in South America; 28 percent in Mexico, 16 percent in Turkey and slightly less than 5 percent in the United States. The remaining 2 percent corresponds to the payment of taxes in Eurasia. Specifically, in Spain, BBVA paid €814 million in own taxes last year, on top of the €1.34 billion in third-party taxes that it managed, for a total tax contribution of €2.15 billion.
BBVA's Total Tax Contribution report
Integrity, prudence and transparency: The principles guiding BBVA’s fiscal policy
“In the taxation field, besides the legitimate creation of value for our investors, we understand that our actions must be aligned with our values and our commitment to society,” explains José María Vallejo, Global Head of Tax at BBVA. That is why, “the principles that guide our actions are: integrity, prudence and transparency,” he adds.
This fiscal strategy is also in line with the OECD and G20 Base Erosion and Profit Shifting (BEPS) project, the Objectives of Sustainable Development of the United Nations and the protection of Human Rights.
José María Vallejo: In the taxation field, besides the legitimate creation of value for our investors, we understand that our actions must be aligned with our values and our commitment to society
In 2019, BBVA participated in the preparation of the ‘Total tax contribution’ report, which studies the tax contribution of the largest European companies. This study, conducted by the European Business Tax Forum (EBTF), shines the spotlight on these companies’ contribution and promotes transparency.
BBVA was named the most transparent financial institution in Spain in 2018, according to the ‘Contribution and transparency 2018’ report by Fundación Compromiso y Transparencia. BBVA also took fourth place in the list of IBEX 35 companies by fiscal transparency included in the report.
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