Our Charter and Our Code of Conduct (Our Code) define how we work at BHP. Our Charter describes our purpose, values and how we measure our success. It is the single most important means by which we communicate who we are, what we do and what we stand for, and is the basis for our decision-making. Supporting Our Charter is Our Code, which brings our values to life so we can make the right choices every day.

Our approach to tax is underpinned by Our Charter and Our Code, and is embodied in our Tax Principles. The Risk and Audit Committee of the BHP Board endorsed these principles and in FY2023, we conducted annual assurance that we have adhered to our Tax Principles.

Our Tax Principles

1. Transparency

We are transparent about the taxes and royalties we pay to governments because we believe openness allows our shareholders, employees, contractors, partners, customers and communities to understand the contribution we make and have a greater ability to assess the integrity of the tax systems in the countries where we operate.

2. Corporate citizenship

We act with integrity when engaging with revenue authorities to support positive and constructive relationships. Where possible, for the purposes of obtaining certainty of our tax positions, we engage with revenue authorities on a real-time basis regarding the application of the tax law and to identify and resolve any disagreements on a timely basis.

3. Risk management and governance

We are committed to strong governance. We identify, assess and manage tax risks in accordance with our global Risk Framework. Material risks are reported to the Risk and Audit Committee.

4. Business rationale

Our transactions have proper commercial purposes and economic rationale. We locate business activities where value is optimally created. We seek to have a tax charge that contributes to superior business performance and delivers long-term shareholder value. Accordingly, we do not engage in aggressive tax planning.

5. Compliance

We respect and comply with the laws of the countries where we operate. We meet all of our tax compliance obligations on time. Our tax obligations include pricing transactions in our global value chain according to where value is created and economic activity occurs, in compliance with the OECD guidelines, and based on the arm’s length principle.

6. Advocating reform

We support simple, stable and competitive tax rules and the principle that the taxing rights of countries should be commensurate with where the economic activity occurs. We engage in the reform process of international tax rules (including transfer pricing) and local tax rules in countries where we operate. We do this because we believe tax systems should be effective, efficient and competitive, in order to support economic growth, job creation and viable long-term tax contributions.

The world is on a path of population growth, increased urbanisation and a lower greenhouse gas (GHG) emissions future. 

BHP is committed to playing our role in building a better world. We seek to do so responsibly and sustainably while continuing to create value for our shareholders and the broader community.

We aim to do this at each step in our value chain. We work in partnership with communities. We provide employment, purchase goods and services, pay taxes, royalties and other payments to governments and make contributions (such as donations) to the communities where we operate.

How we contribute

Exploration and acquisition

We seek to add high-quality Tier 1 copper and nickel interests through our exploration activities and early-stage entry and acquisition options.

How we contribute:

• Payments to suppliers
• Wages paid to employees
• Permits, licence fees and employment taxes

Development and mining 

We strive to achieve the industry’s best performance in safety, operational excellence, project management and allocation of capital.

How we contribute:

• Capital expenditure
• Payments to suppliers and contractors
• Wages paid to employees
• Employment and sales taxes, import duties
• Contributions to communities where we operate

Process and logistics

We process and refine ore, safely manage waste and efficiently and sustainably transport our products to customers.

How we contribute:

• Net profits – corporate taxes paid
• Royalties paid from extraction
• Payments to suppliers and contractors
• Wages paid to employees
• Employment and sales taxes, import duties
• Contributions to communities where we operate

Sales, marketing and procurement

We maximise value through our centralised marketing and procurement organisations, commercial expertise, understanding of markets and customer and supplier relationships.

How we contribute:

• Payments to suppliers and contractors
• Wages paid to employees
• Corporate, employment and sales taxes, import duties

Closure and rehabilitation

We consider closure and rehabilitation throughout the asset life cycle to help minimise our impact and optimise post-closure value for all.

How we contribute:

• Payments to suppliers and contractors
• Corporate taxes paid if alternative revenue streams from post-mining land use are found
• Lower employment and sales taxes