Tax transparency
Our business activities generate a substantial amount and variety of taxes. We pay corporate income taxes, royalties, production taxes, stamp duties, employment and other taxes. In addition, we collect and remit payroll taxes as well as indirect taxes, such as excise duties and VAT. The taxes we collect and pay represent a significant part of our economic contribution to the countries in which we operate. At OMV, we are committed to complying with tax laws in a responsible manner and to having open and constructive relationships with tax authorities, which is also reflected in OMV’s Tax Strategy.
Our tax planning supports OMV’s business and reflects our commercial and economic activity. OMV does not engage in aggressive tax planning which consists of artificial structures put in place merely to save taxes or of transactions lacking economic substance aimed at obtaining undue tax advantages.
OMV Group companies are established in suitable jurisdictions, giving consideration to our business activities and the prevailing regulatory environment available. OMV does not establish its subsidiaries in countries that do not follow international standards of transparency and exchange of information on tax matters, unless justified by operational requirements in line with OMV’s business ethics principles and our Code of Conduct.
Since 2016, OMV has been providing mandatory disclosures under the Payment to Government Directive (according to Section 267c of the Austrian Commercial Code) and publishes its payments made to governments in connection with exploration and extraction activities, such as production entitlements, taxes, or royalties, in the consolidated financial statements. (For more details, see the Consolidated Report on the Payments Made to Governments in the Annual Report 2019.)
In addition, OMV reports payments made to public authorities, such as taxes or royalties in connection with exploration and extraction activities in countries that are members of the Extractive Industries Transparency Initiative (EITI).