BHP has a long-standing commitment to transparency.
We first disclosed our aggregate payments of taxes and royalties in 2000 and we have continually updated and expanded our disclosure in the years since. In our view, such transparency helps build public confidence in the integrity of tax systems, and enables an informed debate on the effectiveness and efficiency of tax policies.
This year, we have published our Economic Contribution Report. This Report discloses the payments we have made to governments during the 2017 financial year on a country-by-country and project-by-project basis. We also disclose our total direct economic contribution on a country-by-country basis.
We have prepared ‘Our payments to governments’ in our Report in accordance with the UK Regulations which implement the EU Accounting Directive. We also support the Australian Voluntary Tax Transparency Code with which our Report complies.
Economic Contribution Report 2017
Our total economic contribution globally in the 2017 financial year was US$26.1 billion. This includes US$4.7 billion globally in taxes, royalties and other payments to governments. Our adjusted effective tax rate was 34 per cent, and when royalties are included, the rate is 44 per cent.
Our approach to tax
Our approach to tax is underpinned by Our Charter and our Code of Business Conduct and is embodied in our global tax principles. Our global tax principles have been endorsed by the Risk and Audit Committee of the BHP Board.