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 2020 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 2020
Our total economic contribution in FY20 was US$37.2 billion. This included payments to suppliers, wages and benefits for our more than 80,000 employees and contractors, dividends, taxes and royalties, and in FY2020 we paid US$15.5 billion to our suppliers globally, with US$1.9 billion paid to local suppliers in the communities in which we operate.
In FY2020, our tax, royalty and other payments to governments totalled US$9.1 billion. Our global adjusted effective tax rate was 33.2 per cent. Once royalties are included, our rate increases to 42.2 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.