0
Creating economic and social impact
€19.4m
€749m I
32.8%
Growing with communities
Our approach to tax
Tax strategy
Our contribution in 2020
1
1
Reviving hop production in Hungary
Shared value projects
1 A1"! Heineken N.V.
14 Annual Report 2020
Introduction
Report of the
Executive Board
Report of the
Supervisory Board
Financial
Statements
Sustainability
Review
Other
Information
We believe in responsible tax behaviour as an
essential part of our sustainability strategy.
The taxes we pay contribute to local economies
and support the development of the many
countries in which we operate.
We support stable, transparent and predictable
tax regimes that incentivise long-term investment
and economic growth.
Our sustainable and transparent tax strategy
is based on a number of key principles:
- Our commitment to comply with relevant
tax laws and international regulations, we aim
to comply with the letter as well as the spirit
of the law.
- Compliance with the HEINEKEN Code
of Conduct.
- Expectation that we will pay tax in the
country where our activities take place.
We fully support and follow the OECD transfer
pricing guidelines and transactions between
our operating companies are based on the
'arm's length' principle.
- Not using tax havens for tax avoidance purposes.
- Open and constructive dialogue with tax
authorities that is based on mutual respect,
transparency and trust. We have co-operative
compliance relationships with tax authorities
in various countries.
Total tax contribution
percategory
4% 52%
I Excise duties paid
Net VAT paid
Employee taxes paid
(including social
security contributions)
Corporate income
tax paid
Other tax paid
Corporate income tax paid by
geographical regions
(.3%
29%
I Europe
Americas
I Asia Pacific
Africa, Middle East
and Eastern Europe
effective income tax rate (beia)
Learn more about this topic on our website
In Hungary, we already source local
ingredients such as barley, sour cherry
and elderflower to brew our popular
beer brand, Soproni. We wanted
to take a step further by reviving
Hungarian hops.
After a two year proj ect with the
Interchurch Aid (MÖS) and the
Ministry of Agriculture, our ambition
has come to fruition. 200 hop plants
were planted in 2018 and the first
harvest took place in August.
As well as supplying our business,
the project supports Hungarian
farmers and is helping to revive
farming communities by providing
employment for disadvantaged
families in the region.
Our regional sourcing projects in Africa
create jobs, local support sustainable development
of the agricultural sector and improve the lives of
rural communities.
Since 2009, we have invested €5.2 million in cash
and €14.2 million in equipment and people through
Public Private Partnership (PPP) projects in Burundi,
Democratic Republic of Congo, Ethiopia, Ivory
Coast, Nigeria, Rwanda, Sierra Leone, and South
Africa. This excludes additional third-party funding
leveraged by our contributions.
In total, these projects have provided market access
to more than 140,000 farmer households.
invested in local sourcing
projects since 2009
Learn more about this topic on our website
