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 2019 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 2019
This included payments to suppliers, wages and benefits for our more than 72,000 employees and contractors, dividends, taxes and royalties, and US$93.5 million voluntarily invested in social projects in communities around the world.
In FY2019, our tax, royalty and other payments to governments totalled US$9.1 billion. Our global adjusted effective tax rate was 36 per cent. Once royalties are included, our rate increases to 44.7 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.