We support transparency in revenue flows from oil and gas activities in resource-rich countries
This helps citizens of those countries access information to hold public authorities to account for the way they use funds received through taxes and other agreements.
Our approach to tax
BP is committed to complying with tax laws in a responsible manner and to having open and constructive relationships with tax authorities. We support efforts to increase public trust in tax systems. We engage in initiatives to simplify and improve tax regimes to encourage investment and economic growth.
European Accounting and Transparency Directives and US Dodd-Frank legislation
We disclose information on payments to governments on a country by country and project basis as required under the revenue transparency provisions contained in the EU Accounting and Transparency Directives, which were recently brought into effect in UK law.
Our report includes information on the payments BP made to governments for our upstream activities in 2015. For BP, these payments could be made in the form of production entitlements, taxes, royalties, bonuses, fees and infrastructure improvements.
BP makes a broader socio-economic contribution to countries in which we operate in addition to the payments that are required to be reported under the regulations. We also make payments to governments in connection with parts of our business other than the Upstream - for example in relation to the transporting, trading, manufacturing and marketing of oil and gas. As well as government payments, BP contributes to the economies of the countries in which we operate by providing jobs for employees and contractors, purchasing materials from local suppliers and supporting social investment activities. We are awaiting the finalization and adoption of the SEC rules under the US Dodd-Frank Act.
Extractive Industries Transparency Initiative
As a founding member of the Extractive Industries Transparency Initiative (EITI), BP works with governments, non-governmental organizations and international agencies to improve transparency and disclosure of payments to governments. The EITI is an inclusive process that is tailored to fit the local fiscal and legal regimes.
We support governments’ efforts towards EITI certification and have worked with many countries on implementation of their EITI commitments, including Australia, Azerbaijan, Indonesia, Iraq, Norway, Trinidad & Tobago, the UK and US.
See eiti.org for more information on our EITI activities.