Tax transparency
We want to help facilitate more informed conversations with our stakeholders about our contribution to economic development, the part we play in society, and the rigour of our tax practices
We believe transparent reporting about our tax payments can enable more meaningful engagement about the energy transition with our stakeholders. We can begin to help them assess the financial resources available and the potential tax implications of a government’s strategic and energy policy decisions related to this transition.
We are committed to:
- Complying with tax laws in a responsible manner.
- Paying and reporting about our taxes on time.
- Being transparent about our tax principles and the taxes we pay.
- Having open and constructive conversations with stakeholders, including governments and tax authorities.
Our purpose and our code of conduct inform the responsible approach we take to managing our taxes.
Our tax report 2019
We have provided information relating to tax and our economic contribution for many years, working constructively with governments and civil society around the world to develop disclosure standards that provide accurate and useful information.
Our first tax report builds on this longstanding practice of disclosing information on tax, going beyond our statutory obligations. We’ve listened and responded to our stakeholders’ calls to provide more transparent information about our global tax practices and payments by country. And this report is another step towards our aim of being recognized as an industry leader for the transparency of our reporting.
New disclosures:
- The total tax contribution for our global operations. This covers all our business activities and details the taxes we pay directly to governments on our own behalf, along with taxes we collect and pay to governments on behalf of others.
- Data from our OECD country by country report – table 1, which shows financial data and the corporate income tax payments made for all bp subsidiaries, together with commentaries by country where our tax rate differs from the statutory tax rate.
- Summary activities of bp subsidiaries by country in alignment with our OECD country by country report – table 2.
- Details of bp companies located in areas considered to be low tax jurisdictions.
Our responsible tax principles
The B Team has set out seven principles that offer a clear framework for responsible tax practice. We have adopted them all.
Accountability and governance
Tax is a core part of corporate responsibility and governance and is overseen by the board of directors.
Compliance
We comply with the tax legislation of the countries in which we operate and pay the right amount of tax at the right time, in the countries where we create value.
Business structure
We will only use business structures that are driven by commercial considerations, are aligned with business activity and which have genuine substance. We do not seek abusive tax results.
Relationships with authorities
We seek, wherever possible, to develop co-operative relationships with tax authorities, based on mutual respect, transparency and trust.
Seeking and accepting tax incentives
Where we claim tax incentives offered by government authorities, we seek to ensure that they are transparent and consistent with statutory or regulatory frameworks.
Supporting effective tax systems
We engage constructively in national and international dialogue with governments, business groups and civil society to support the development of effective tax systems, legislation and administration.
Transparency
We provide regular information to our stakeholders, including investors, policy makers, employees, civil society and the general public, about our approach to tax and taxes paid.
Our total tax contribution overview
bp’s total tax contribution for 2019 was $42.9 billion. This comprises the taxes we paid and collected on our global operations.
$42.9bn
bp’s total tax contribution for 2019
In 2019 our presence in 79 countries generated $283 billion in economic value, which includes supporting around 50,000 suppliers and more than 70,000 employees. And we contributed $9.2 billion in direct taxes, royalties, employee taxes and indirect taxes to governments globally. Additionally, we collected and paid $33.7 billion to governments on behalf of others, such as our customers, suppliers and employees.
Details of our business activities and our total tax contribution in the countries in which we operate are can be seen in the clickable map below. Our full country analysis is contained in our tax report 2019.
Country by country report
In our tax report 2019, we chose to publish data from our OECD country by country report. The data from this report is focused on corporate taxes and contains financial data for all countries where we have a taxable presence, including our corporate income tax payments.
Although we are not formally required to publish this report, after listening to our stakeholders we believe it can help improve their understanding of our activities, deepen their trust in our approach to tax and make useful information more easily accessible.
“As well as setting out our tax contribution, this report is about increasing transparency to show that we manage the taxes we pay and collect responsibly, that we are playing our part and contributing to society, and that our relationships with governments are conducted on an open and constructive basis.”
Murray Auchincloss, chief financial officer
Working with EITI
bp is a founding member of the Extractive Industries Transparency Initiative (EITI), which supports the disclosure of payments made to and received by governments in relation to oil, gas and mining.
Through EITI we work with governments, NGOs and international agencies to improve transparency. For example, in 2019 we enacted our global commitment through membership of the international board, including supporting decision making on the new global EITI standard, which represents a further evolution in transparency. The focus is on making disclosure and open data routine parts of government and corporate reporting, providing information to stakeholders that supports their widespread use in analysis and decision making. It now requires contract transparency for new contracts from 2021, plus new requirements on environmental reporting and gender.