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Reporting basis and governance of non-financial indicators (continued)
Growing with communities
Values and behaviours
Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report 2017
Our approach to tax
In support of HEINEKEN's business priorities we pursue a tax strategy that is sustainable and transparent. This
strategy is annually reviewed and approved both by the Executive Board and the Audit Committee.
Ourtax strategy is based on a number of key principles:
- Our commitment to comply with relevant tax laws and international regulations goes beyond legal compliance:
Our way of working conforms with the HEINEKEN Code of Conduct;
We expect to pay tax on our activities in the country where they take place; and
We do not use tax havens for tax avoidance purposes.
-We pursue an open and constructive dialogue with tax authorities that is based on respect, transparency
and trust. We have developed co-operative compliance relationships with tax authorities in several countries
including, amongst others, the Netherlands and in the United Kingdom.
- We fully support and follow the OECD transfer pricing guidelines. Transactions between HEINEKEN companies
are conducted at 'arm's length'.
For more information on ourtax strategy, governance and organisation, visit our website
Total Tax Contribution
per category
The tax payments made by the fully consolidated HEINEKEN companies during the calendar year. The total
tax contribution includes a limited degree of estimation. The scope of total tax contribution is limited to the
consolidated reporting entities (not JVs and associates). The categories are: corporate income tax paid, excise
duties paid, net VAT paid, employee taxes paid (incl. social security contributions, but excluding pension
contributions), othertaxes paid
Corporate income tax paid
Cash flows arising from taxes on income, reported by the fully consolidated Heineken companies
Effective income
tax rate (beia)
Income tax expense expressed as a percentage of the profit before income tax, adjusted for share of profit of
associates and joint ventures and impairments thereof (net of income tax)
Beia
Before exceptional items and amortisation of acquisition-related intangible assets
Total direct contributions
Voluntary contributions (in cash, knowledge, employee time, products and equipment) that help local communities
and broader societies address their development priorities and increase the quality of life. The operating
companies are free to establish which issues are relevant to both the community and the business. We provide
guidelines how to prioritise projects within the focus areas of Brewing a Better World, for example on water
stewardship and addressing alcohol related harm. In certain markets, community investments are coordinated
through local foundations, like in Spain and Singapore.
We encourage our employees to volunteertheir time with local community organisations. Volunteerism enables
employees to give theirtime and professional expertise to organisations in need of human resources, and it makes
Brewing a Better World personal, relevant and a source of pride and ownership for our employees
HEINEKEN Africa
Foundation
Donations as a voluntary engagement in collaboration with (non) governmental charitable organisations that
extends beyond our core business activities, to help improve the health of the communities where we do business.
The HEINEKEN Africa Foundation supports projects that improve health for the people who need it most. Over
the years, the Foundation has developed strong expertise in Mother Child Care and Water, Sanitation and
Hygiene (WASH). The Foundation works closely together with the HEINEKEN breweries in Sub-Saharan Africa
and (N)GOs. Underpinning HEINEKEN's longstanding commitmentto Africa, projects are only carried out in the
Sub-Saharan African countries in which HEINEKEN is operating. For each project a partnership is created between
the HEINEKEN Africa Foundation, the local HEINEKEN brewery and a local or international (N)GO. The Foundation
provides funding and administrative assistance. The local brewery supports through means of manpower,
expertise and monitoring. The (N)GO is responsible for the implementation and continuation of the project.
Visit the Foundation's website for more information
Speak Up policy (number
of reports breakdown)
The number of Speak Up reports is the total number of reports received via our Speak Up channels in which
reporters raised a concern about a (possible) breach of the HEINEKEN Code of Business Conduct. A break-down
per topic is presented to give insight into the main topics of said Speak Up reports. The Speak Up policy is available
at the HEINEKEN Speak Up website (http://speakup.heineken.com)
Training Code of Business
Conduct (number
of employees)
The Code of Business Conduct training has to be completed by all HEINEKEN employees. It is expected to be
completed as part of the induction for new joiners. Thereafter it is expected to be completed regularly (preferably
on an annual basis). The training is facilitated by an e-learning module, which can be completed online, as well as
during a classroom session for those employees without access to their own workstation. Atraining completion is
counted if (i) an employee has completed the e-learning (this is automatically registered in a database), or (ii) if an
employee has attended a classroom training and signed off an attendance form
Training anti-bribery
(number of employees)
In 2015, we launched athree-year anti-bribery e-learning programme for key employees to ensure that they recognise
and resist bribery. The anti-bribery training is mandatory for a selected audience (those above a certain job grade and
those considered to be risk groups). A training completion is counted if an employee has completed the e-learning
