Our approach to tax and transparency across the world.
At Glencore, we want to be recognised as a “good corporate fiscal citizen”.
Our aim is to achieve an optimal tax position for the Group, taking into account the sustainability and continuity of tax positions over the longer term.
We seek to be transparent in our dealings with tax authorities. We build and maintain partnerships with them, and proactively discuss matters with them to address differences of interpretation quickly and equitably.
In alignment with Chapter 10 of the EU Accounting Directive, Glencore discloses its economic contribution and payments to governments on a country-by-country and project-by-project basis in its Payments to Governments Report.
In 2016, we paid nearly $4 billion to host governments in taxes and royalties (2015: $4.5 billion).
In 2016, the region where we paid the highest taxes and royalties was Australia – where we paid nearly USD1.4 billion.
We also paid $967 million in South America, $479 million in Africa, $369 million in North America and $753 million in the rest of the world.
We pay taxes on the income we generate within a country. But we also pay other, non-income based taxes as required – such as licence fees, property taxes, capital taxes, withholding taxes, export taxes, payroll taxes, and so on.
In addition to taxes, we pay royalties. Depending on regulations around the world, these are based on a percentage of either the revenue we earn, or the volume of a natural resource we extract and sell.