Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 147

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 147
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 all tax authorities. Given the size and complexity of our organisation, which operates across 58 jurisdictions, a number of areas of differing interpretation or disputes with tax authorities exist at any point in time. We cooperate with the relevant local tax authorities to mutually agree and resolve these in a timely manner. With respect to our customers’ taxes, we are guided by the following principles: – We have made considerable investments to support external tax transparency initiatives and reduce the risk of banking services being used to facilitate customer tax evasion. Initiatives include the US Foreign Account Tax Compliance Act, the OECD Standard for Automatic Exchange of Financial Account Information (‘Common Reporting Standard’), and the UK legislation on the corporate criminal offence of failing to prevent the facilitation of tax evasion. – We implement processes that aim to ensure that inappropriately tax-motivated products and services are not provided to our customers. Our tax contributions The Group effective tax rate for the year of 22.6% was higher than in the previous year (2023: 19.1%). The effective tax rate for the year increased by 4.8% due to the non- deductible loss in respect of the sale of our business in Argentina, and decreased by 3.6% due to the non-taxable gain on the disposal of HSBC Canada. Further details are provided on page 402 . Tax paid in 2024 is higher than in 2023 mainly because the Hong Kong Inland Revenue Department did not issue HSBC’s corporation tax assessments for 2023 until January 2024, at which time they were paid. The equivalent assessments for 2024 were received and paid in December 2024. The UK bank levy charge for 2024 of $249m was lower than the charge of $339m in 2023, as the charge for 2023 was increased by adjustments arising upon filing prior year returns. As highlighted below, in addition to paying $9.2bn (2023: $6.8bn) of our own tax liabilities during 2024, we collected taxes of $10.1bn (2023: $10.8bn) on behalf of governments around the world. A more detailed geographical breakdown of the taxes paid in 2024 is provided in the ESG Data Pack. Taxes paid – by type of tax Tax on profits $6,080m (2023: $3,685m) Withholding taxes $667m (2023: $432m) Employer taxes $1,003m (202