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Tax transparency

We have continued to engage in conversations with our stakeholders, including ‎communities, investors, civil society organizations, policy makers and global tax ‎experts. This dialogue helps build understanding about our contribution to economic ‎development and role in society, as well as 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’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 contribution

$34.8bn

Comprises the taxes we paid and collected on our global operations in 2020

 


(2019: $42.9 billion)‎‎

 

Total taxes paid
$5.1bn

Includes corporate income taxes on profits, as well as other direct and indirect taxes levied on our activities. 

 

(2019: $9.2 billion)
Total taxes paid in 2020 – pie chart
Total taxes collected
$29.7bn

Includes amounts that we have collected on behalf on others – for example, our customers, supplers and employees – and paid to governments.

 

(2019: $33.7 billion)
Total taxes collected in 2020 – pie chart

Our tax report 2020

Our second tax report builds on our longstanding practice of disclosing information ‎on tax, ‎going beyond our statutory obligations. To help us improve on our 2019 ‎report, we listened to feedback from our stakeholders and worked with expert ‎individuals and groups to ensure the information we provide about our tax matters ‎is useful, improves understanding of our activities and deepens trust in bp.‎

 

In response to stakeholder feedback on our 2019 report we have:‎

 

  • Focused our disclosures around low tax jurisdictions to include details of our ‎activities in countries where the statutory tax rate is less than 15%. 
  • Explained ‎how the tax information contained in this report and that in the bp Annual ‎Report 2020 relate to each other.
  • Made data from our country by country report ‎available in Excel format (table 1 and table 2).‎
“2020 was the year we launched our sustainability frame to underpin our strategy. This ‎is relevant to our tax activities where the frame connects our business activities with ‎the needs of society and the environment.
 
“The significant tax contributions we make provide governments with financial ‎resources to support their communities, and our advocacy for well-designed tax ‎policies helps attract investment and support the energy transition‎‎.”

Murray Auchincloss, chief financial officer

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.‎

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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 2020 was $34.8 billion. This comprises the taxes we ‎paid ‎and collected on our global operations.‎‎ 

 

We had operations in 72 countries in 2020. More than 96% of the total taxes we paid and ‎‎92% 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 2020.‎

Our total tax contributions around the world

We have had a presence in Trinidad & Tobago since 1962. We have 15 offshore production platforms and two onshore gas and liquid processing facilities. We also have shareholdings in the midstream, with interests in Atlantic LNG, a four train LNG facility. Towards the end of 2020 we disposed of our petrochemicals business in the country. Trinidad & Tobago $211 m Total tax contribution Business activity bp’s history is rooted in the UK; we’ve been in operation here for more than a century. Our activities range from finding different sources of energy to delivering products and services to customers. We’re focused on supporting bp’s net zero aims by reducing emissions from our existing operations in the North Sea, entering the UK offshore wind market, and advancing new and emerging renewable energy technologies such as carbon capture, use and storage and hydrogen. We also operate the largest public electric vehicle charging network in the UK, bp pulse. Our head office is located in London, and our North Sea headquarters are in Aberdeen. We also have several offices located in south-east England and conduct significant research and development activities at sites across the country. Our central treasury and financing services, and much of the group’s external debt, are located in the UK. The UK therefore has third-party interest costs and receives interest income from its group financing activities. We often hold overseas operations directly through overseas branches of UK companies and these activities are subject to corporate taxes in the UK and the overseas country. Corporate taxes paid in the overseas country are usually available as a credit against any UK corporate taxes arising on these same activities. The UK is also the holding location for our investments in new ventures. Towards the end of 2020 we divested our petrochemical business in the country. UK $2,495 m Total tax contribution Business activity We have operated in China since the early 1970s and are one of the leading foreign investors in the oil and gas industry. Our activities include fuels, lubricants, aviation and electric vehicle charging businesses, and gas supply and trading. We conduct these activities either through bp subsidiaries or joint ventures. We partner with state-owned companies including PetroChina, Sinopec, CNOOC, China National Aviation Company and Dongfeng Motor Corporation, and with private companies including Shandong Dongming Petrochemical Companies and DiDi. Towards the end of 2020 we divested our petrochemical business in the country. China $355 m Total tax contribution Business activity We have operated in New Zealand since 1946. We sell fuel products and services in the country and operate more than 100 retail sites. We have a national network of bp-branded independent retailers and distributor partners, as well as a terminals and logistics operation. Our wider operations in the country include lubricants and aviation activities. New Zealand $347 m Total tax contribution Business activity We have operated in Australia since 1919. Our activities span every state and territory, and include everything from finding energy to delivering products and services to customers. We have exploration activities in the Carnarvon basin including a gas joint development in the Browse basin and an interest in the Woodside-operated North West Shelf project. We sell products and services through our national retail network, and provide marine, aviation and lubricant products to our business customers. We made the decision to cease refining crude oil at the Kwinana refinery in early 2021 and convert it to a fuels import terminal. Australia $3,792 m Total tax contribution Business activity Indonesia We have had a presence in Indonesia for more than 50 years. We operate the Tangguh liquid natural gas (LNG) plant in the country. The plant is a unitized development of six gas fields located in Bintuni Bay in Papua Barat province and has been producing LNG since 2009. We also have retail and marketing activities for motor and aviation fuels and lubricants. Towards the end of 2020 we divested our petrochemical business in the country. $16 m Total tax contribution Business activity We have had a presence in Malaysia for more than 50 years and our activities include lubricants sales and marketing businesses. We also operate a lubricants blending plant in Port Klang, Selangor. In 2010 we opened a business service centre in Kuala Lumpur which accounts for the majority of our in-country employees. Our service centre provides support services to the group including accounting, procurement, indirect taxes compliance, human resources support and information technology services. Towards the end of 2020 we divested our petrochemical business in the country. Malaysia $11 m Total tax contribution Business activity We have operated in Singapore for over 50 years. Our main business activities in Singapore include oil, gas, biofuel, carbon and finance trading for the Asia Pacific and Middle East region. Singapore is also the regional headquarters from which bp’s shipping, lubricants and aviation fuels businesses serve international markets and customers. Singapore $117 m Total tax contribution Business activity We have a century-long business presence in India and are one of the largest international energy companies in the country. In addition to our gas value chain alliance with Reliance Industries Ltd (RIL), our activities include Castrol lubricants, oil and gas trading, fuel retail, clean energy projects through Lightsource bp, IT-enabled back-office activities, staffing and training for our global marine fleet. Our 50:50 joint venture, India Gas Solutions Private Limited, is also part of our gas value chain alliance with RIL to source and market gas in India. Reliance BP Mobility Limited, our 49% joint venture with RIL is a leading private sector retail fuel marketer and supplier of aviation fuel. India $116 m Total tax contribution Business activity We have had a presence in Oman since 2007. We hold a 40% interest and operate Block 61 in partnership with the Oman Oil Company for Exploration & Production, PC Oman, a wholly owned subsidiary of Petronas and PPTEP. We partner with Eni at Block 77. We also have lubricants sales and distribution activities in Oman. Oman $157 m Total tax contribution Business activity In the United Arab Emirates, we are focused on finding and generating energy in Abu Dhabi, with interests including contractual joint ventures with Abu Dhabi National Oil Company (ADNOC). We hold 10% equity interests in ADNOC Onshore, ADNOC LNG and the National Gas Shipping Company Ltd (NGSCO). bp is the asset leader for the Bab Field. In addition, we have lubricants, aviation fuel and trading businesses based in Dubai. UAE $1,895 m Total tax contribution Business activity We have a long history of oil exploration and production in Iraq. This history stretches back to the 1920s when the company that would eventually come to be known as bp helped Iraq locate, produce and export oil. In 2009 we became the first International Oil Company to return to Iraq after a period of 35 years. We were awarded a technical service contract to increase production at the Rumaila oil field, partnering with the state-owned Basra Oil Company (BOC), PetroChina and the State Organization for Marketing of oil (SOMO). bp employees are seconded to the Rumaila Operating Organisation. Since 2014, Air bp have supplied and provided jet fuel services in Northern Iraq. They are the majority stakeholder in MMAFCO, a joint venture. Iraq $114 m Total tax contribution Business activity We have had a presence in South Africa for more than 100 years. Our activities in the country include crude oil importation and refining, and marketing and sales of aviation fuels and lubricants. We have more than 500 bp-branded retail sites in the country and a 50% share in the largest refinery, Sapref, located in Durban. We also operate nine storage depots and three coastal installations for our fuels business. South Africa $1,315 m Total tax contribution Business activity We have invested more than $30 billion in Angola. For nearly half a century, we have contributed to the development of Angola’s energy industry, and to the building of the country’s institutions, people, and communities. We own and operate interests in Blocks 18 and 31 in the country and have non-operated interests in Blocks 15, 17, 29 and the Angola LNG plant. Angola $251 m Total tax contribution Business activity We have operated in Egypt for almost 60 years. We have interests in the West Nile Delta, Atoll and Zohr gas fields in the country. We also have a 40% interest in the Natural Gas Vehicles Company, which was established in 1995 as the first company in Africa and the Middle East to commercialize natural gas as an alternative fuel for vehicles. We also partner with TAQA Arabia in a lubricants manufacturing and distribution business. Egypt $278 m Total tax contribution Business activity We have operated in Mauritania since 2016. We partner with Kosmos Energy and SMH and have a 62% interest in and operate offshore Blocks C-6, C-8, C-12 and C-13. In 2018, we announced Phase 1 of the cross-border Greater Tortue Ahmeyim development across the border of Mauritania and Senegal, following agreement between their governments and partners bp, Kosmos Energy and National Oil Companies PETROSEN and SMH. Greater Tortue Ahmeyim is in development and our remaining extractive activities are in exploration and appraisal phases. Mauritania $1 m Total tax contribution Business activity We have operated in Senegal since 2016. We have a 60% interest in offshore blocks St Louis Profond and Cayar Profond, and partner with Kosmos Energy and Société des Pétroles du Sénégal (PETROSEN). In 2018, we announced Phase 1 of the cross-border Greater Tortue Ahmeyim development across the border of Mauritania and Senegal, following agreement between their governments and partners bp, Kosmos Energy and National Oil Companies PETROSEN and SMH. Greater Tortue Ahmeyim is under development and our remaining extractive activities are in exploration and appraisal phases. Senegal $3 m Total tax contribution Business activity We have had a presence in Canada for more than 50 years. We hold interests in 10 exploration licences in the Eastern Newfoundland Region, offshore Newfoundland and Labrador. We also have interests in Canada’s oil sands. Our trading business spans the country, making us one of the top oil and natural gas marketers and traders in Canada. Canada $56 m Total tax contribution Business activity We have had a presence in the US since the late 1800s. Our US resilient and focused hydrocarbons businesses include deepwater platforms in the Gulf of Mexico and onshore assets located primarily in the south-western region of the US. And our renewables businesses include onshore and offshore wind, biogas and solar businesses. Our retail presence includes bp, ARCO, Amoco and Thorntons branded sites, along with more than 1,000 ampm convenience stores. Our US marketing and trading business supplies a wide range of products that support a low carbon energy future. Towards the end of 2020 we divested our petrochemical business in the country. US $7,391 m Total tax contribution Business activity We have had a presence in Azerbaijan since 1992. We signed our first PSA with the state oil company SOCAR in September 1994. Since then, together with our partners, we’ve invested $78.5 billion in the Azeri-Chirag-Deepwater Gunashli and Shah Deniz fields, as well as the Baku-Tbilisi-Ceyhan pipeline and the South Caucasus Pipeline projects. Azerbaijan $160 m Total tax contribution Business activity Our presence in Hungary consists principally of our business service centres located in Budapest and Szeged, which opened in 2009 and 2017 respectively. Our service centres provide support services to the group including accounting, procurement, indirect tax compliance, human resources support and information technology services. We also supply aviation fuels. Hungary $34 m Total tax contribution Business activity We have had a presence in Poland since 1991 and our first fuel station opened in 1995. Our activities in the country include marketing, distribution and sales of fuels and lubricants. We are also active in sales of jet fuel through our joint venture, Lotos-Air bp. Poland $488 m Total tax contribution Business activity We have operated in Germany for more than 100 years. We have major offices in Hamburg and Bochum, and we operate the second-largest refining system in Germany. This includes our Lingen refinery and the Gelsenkirchen, Scholven and Horst plants, which belong to Ruhr Oel GmbH. We also operate a fuels and lubricants retail business, and supply aviation and shipping fuels. Our lubricant plant in Mönchengladbach produces and distributes high performance lubricants and metalworking fluids for industry. And in Landau, we manufacture various cooling lubricants and industrial cleaners. Germany $9,895 m Total tax contribution Business activity We have had a presence in the Netherlands since 1954. We operate the Rotterdam refinery, which is one of the largest in Western Europe. We also have fuels, lubricants and aviation marketing and distribution activities. Towards the end of 2020 we divested our petrochemical business in the country. Netherlands $894 m Total tax contribution Business activity Belgium We have had a presence in Belgium since 1909. We have a facility for the production of lubricants in Gent, and an office in Brussels. We also operate an aviation and shipping fuels business. Towards the end of 2020 we disposed of our petrochemicals business in the country. $27 m Total tax contribution Business activity We have had a presence in Spain since 1954. We have an 8% share of the country’s retail market. We operate a refinery in Castellón, lead multiple cross-business activities – fuels (through a network of more than 750 retail stations), aviation, petroleum coke, gas and lubricants, and we are developing clean energy projects through Lightsource bp. Spain $1,884 m Total tax contribution Business activity We have had a presence in Algeria since the mid-1950s. We have interests in two major gas projects in the country: In Salah and In Amenas, where we partner with Sonatrach and Equinor to supply gas to the domestic and European markets. Algeria $52 m Total tax contribution Business activity UK Poland Hungary Spain Germany Netherlands Belgium Canada US Trinidad & Tobago Senegal Mauritania Algeria Egypt Angola South Africa Azerbaijan Iraq UAE Oman India China Malaysia Singapore Indonesia Australia New Zealand

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 economic contribution reports for the UK, US and Australia.