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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’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 – reimagining energy for people and our planet – 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 activites. 

 

(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

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

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.