BBVA, leading financial institution in fiscal transparency in Spain
BBVA is Spain’s most transparent financial institution, according to 'Contribution and Transparency 2018', a report published by Fundación Compromiso y Transparencia (Commitment and Transparency Foundation). In the benchmark report, which lists all IBEX 35 companies according to their fiscal transparency practices, BBVA takes the fourth spot.
Yet again this year, BBVA took one of the top spots in this year’s edition, the fifth, of the fiscal transparency report that Fundación Compromiso y Transparencia publishes every year. The report’s results bear witness to these companies’ commitment to properly reporting on their fiscal responsibility compliance efforts.
According to the report, BBVA belongs to the group of "Spanish multinational companies that are becoming increasingly aware of the convenience of justifying their contribution to society in terms of compliance with their tax obligations.” BBVA ranks fourth in this year’s IBEX transparency ranking, higher than any of its financial sector peers.
With 19 points out of 24, BBVA is included in the “transparent" category, ahead of Endesa (23 points), Red Eléctrica (22 points), Iberdrola and Repsol (20 points each), Banco Sabadell (18 points) and, finally, Mediaset, Inditex and Telefónica, (each with 17 points). The remaining IBEX 35 companies are classified in the list's "translucent" and "opaque" categories.
A consolidated fiscal strategy
BBVA’s fiscal strategy builds on the corporate principles of integrity, prudence and transparency. These are the main pillars of BBVA’s performance in tax-related matters. Likewise, BBVA’s fiscal strategy is strongly marked by compliance with the BEPS principles.
Taking these principles into consideration, BBVA defined the following tax-related guidelines: engage in economic activities that create value; adapt to the new digital environment; establish a transfer pricing policy; cooperate in a reciprocal way with Tax Authorities; and, finally, to work for a clear, responsible and transparent communication.
This is the second time in 2019 that the bank is recognized for its good fiscal transparency practices, following its inclusion in a report by CSR Europe and PWC published in March. In this report, the European CSR network and the global consulting firm praised the efforts that BBVA has been undertaking in the field of fiscal transparency since 2011.
It was precisely in 2011 that BBVA started publicly and voluntarily disclosing its global tax contribution, consisting of the total of its own tax payments and those made on behalf of third parties. Thus, the financial institution complies with its corporate principle of transparency and social responsibility commitment.
Every year BBVA publishes its Total Tax Contribution report (TTC), containing the breakdown of its tax payments in each country in which it has a significant presence. In this regard, the Group is firmly committed to complying with the applicable tax laws in all the countries where it develops its activity. According to the latest report, in 2018, BBVA Group paid €4,5 billion in taxes on its business activities around the world, 10 percent more than in 2017.