Reporting basis and governance of non-financial indicators (continued)
Growing with communities
Corporate income tax paid
O Q,
Heineken N.V. Annual Report 2018
Report of the Executive Board
Report of the Supervisory Board
Financial Statements
Sustainability Review
Other Information
Our approach to tax
Total Tax Contribution
per category
Effective income
tax rate (beia)
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.
Our tax 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 our tax strategy, governance and organisation,
visit our website
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), other taxes paid
Cash flows arising from taxes on income, reported by the fully
consolidated HEINEKEN companies
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)
Total direct contributions
HEINEKEN Africa
Foundation
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 volunteer their time with local
community organisations. Volunteerism enables employees to give
their time 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
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 commitment to 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 i nformation
Beia
Before exceptional items and amortisation of acquisition-related
intangible assets