Last year BBVA Group paid €3.76 billion in taxes on its global operations, 25.15% more than in 2015. Its global tax contribution (counting own taxes and third party taxes it manages) stood at €9.44 billion. For fifth consecutive year, BBVA is voluntarily releasing its tax contribution, in line with its corporate transparency principle and its social responsibility commitment.
To calculate its global tax contribution throughout the year, BBVA follows PwC’s Total Tax Contribution (TTC) methodology, which takes into account different taxes (Corporations, VAT, Social Security Contributions...) an activity pays as a result of its own activity and the taxes it manages in its capacity as intermediary between different stakeholders and the tax authorities of each one of the countries or regions in which it operates.
Every year, in its Global Tax Contribution Report, BBVA voluntarily discloses the payment of taxes in those countries in which it has a significant presence. As José María Vallejo, head of Tax services of BBVA Group, “this report intends to be something more than a praiseworthy exercise in transparency, to be recognized as one of the best practices among leading companies.”
Of the €9.44 billion generated by BBVA’s tax activity (14.1% more than in 2015), €3.76 billion correspond to own taxes, while €5.68 were generated by third-party tax management undertakings.
On a geographical basis, the largest amount of taxes were paid in Latin America (€3.08 billion), Spain (€2.37 billion) and México (1.75 billion).
As regards BBVA’s own tax contribution in 2016, the corporate income tax represented the most significant percentage (50.66%), followed by employee and professional related taxes (18.53%) and VAT (17.94%). The remainder (12.87%) corresponded to taxes on real estate properties, economic activities and local taxes.
In 2015, BBVA approved its new tax strategy, setting out the principles that guide its behavior in tax-related matters and attesting to its commitment to transparency and social responsibility. Some of these basic principles include: promoting the obligation to pay the taxes generated by a business activity in the country in which it takes place; establishing a mutual cooperation relationship with tax authorities and actively working to promote the development of a new digital environment in tax management.
In 2016, BBVA continued making progress in the development of its tax transparency and responsibility along two lines:
- The integration and strengthening of the principles of OECD/G20 Project to fight Base Erosion and Profit Shifting (BEPS) which BBVA has assumed as its own.
- Further development of the Group’s tax control model, which has been reviewed by an independent auditor and distinguished as best practice.
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