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Tax and transparency

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 2021 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 2021

Our total direct economic contribution for FY2021 was US$40.9 billion. This includes payments to suppliers, wages and benefits for around 80,000 employees and contractors, dividends, taxes, royalties and voluntary investment in social projects across the communities where we operate. 
In FY2021, our tax, royalty and other payments to governments totaled US$11.1 billion. Of this, 84.7 per cent or US$9.4 billion was paid in Australia. During the last decade, we paid US$84.0 billion globally in taxes, royalties and other payments, including US$65.4 billion (approximately A$80.3 billion) in Australia. Our global adjusted effective tax rate in FY2021 was 34.1 per cent, which is broadly in line with our average adjusted effective tax rate over the past decade of 33.4 per cent. Once royalties are included, our FY2021 rate increases to 40.7 per cent.

Our approach to tax

Our approach to tax is underpinned by Our Charter and our Code of 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.

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 2021.

2021 total payments to governments (US$M)

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Payments to governments

Here's a breakdown of our overall payments to governments in 2021
US$40.9bn Our total economic contribution was US$40.9 billion
US$11.1bn Our total payments to governments was US$11.1 billion
84.7% 84.7% of our total payments was to the Australian government
12.6% The Chilean government made up 12.6% of our total payments.
0.1% Of our total payments, 0.1% went to the US government
2.6% The remaining 2.6% was shared amongst other countries

*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 BHP's Tax Strategy (PDF 561 KB)

BHP was required to file a report outlining payments to governments for the FY20 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.