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Tax transparency

We believe tax has a role to play in the energy transition. Transparent reporting about our tax payments and practices can enable more meaningful engagement with our stakeholders around bp’s role in the transition

We’re 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.‎

Total tax contributiona

$44.2bn

comprises the taxes we paid and collected on our global operations.

 


(2021: $41.3 billion)‎‎

 

Our tax report 2022

We continue to have conversations with our stakeholders, including communities, investors, civil society organizations, policy makers and global tax experts. And the feedback we receive is helping us improve our disclosures and make sure the information we provide about our tax matters is useful.


In this report, we share our experience and observations of how the tax landscape is evolving, as we transition to a lower carbon economy.


What’s new

In response to stakeholder feedback on our previous tax report, we have provided commentary about current external issues that impact our tax matters, including:

 

  • our approach to windfall profit taxes on page 6
  • the relevance of tax incentives for the energy transition on page 9.
“Tax can be used to support the transition to lower carbon energy, by helping create an attractive environment for low carbon investment‎‎.”

Jan Lyons, SVP, tax

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.‎

 

See our tax report 2022 for examples of how we are embedding our responsible tax principles.

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Accountability and governance

Tax is a core part of corporate responsibility and governance and is overseen by our ‎board of directors.‎

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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.‎

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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.

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Relationships with authorities

We seek, wherever possible, to develop co-operative relationships with tax ‎authorities, based on mutual respect, transparency and trust.‎

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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.‎

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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.‎

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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 2022 was $44.2 billion (2021: $41.3 billion). This comprises the taxes we paid and collected on our global operations.‎‎ 

 

We had operations in 62 countries in 2022. More than 94% of the total taxes we paid and 93% of total taxes we collected arose in our major countries of operation. ‎‎ ‎

 

Details of our business activities and our total tax contribution in the countries in which ‎we operate can be seen in the clickable map below. Our full country analysis is ‎contained in our tax report 2022.‎

Our total tax contributions around the world

Country by country report

We publish data from our OECD country by country report, which 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.‎

We also publish information on our economic contribution across Europe and in the UK and the US.