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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.

2017 total payments to governments (US$M)*

BHP pays taxes, royalties and other payments in accordance with the tax regulations and laws applying in the jurisdictions in which we operate. This section outlines our payments to governments by country in 2017.

Payments to government by country

* Payments to governments have been prepared on the basis set out in 'Basis of report preparation' section.

Read BHP's Tax Principles (PDF 19 KB)

Read more on the tax paid by BHP in Australia.

BHP was required to file a report outlining payments to governments for the 2016 year end under the UK Reports to Payments to Governments Regulations 2014, as amended by the Reports on Payments to Governments (Amendment) Regulations 2015. The UK Regulations implement the EU Accounting Directive in the United Kingdom.  BHP was also required to file reports in Canada under the Extractive Sector Transparency Measures Act (“ESTMA”). BHP's report as required under the UK regulations can be found online at the National Storage Mechanism here. The Canadian reports use this report as a substitution report.

BHP Canada Inc. ESTMA Cover Page 2016 (PDF 113 KB)

Rio Algom Limited ESTMA Cover Page 2016 (PDF 109 KB)

BHP (Trinidad-2C) Inc. ESTMA Cover Page 2016 (PDF 94 KB)

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