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Reporting basis and governance of non-financial indicators
Growing with communities
Heineken N.V.
Annual Report 2020
Introduction
Report of the
Executive Board
Report of the
Supervisory Board
Financial
Statements
Sustainability
Review
Other
Information
Our approach to tax
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
Tax strategy HEINEKEN's 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 HEINEKEN 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 The tax payments made by the fully consolidated HEINEKEN companies
per category 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 (including social security contributions, but excluding pension
contributions), other taxes 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 Malaysia
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
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 long-standing 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 information
