Home Investors Annual reporting Economic contribution report Download the report Our approach to transparency and tax During a global pandemic, tax and broader economic policy is rightly a major subject of discussion in many jurisdictions. BHP has a strong commitment to demonstrating the highest standards of corporate governance and transparency. Our approach to tax is underpinned by Our Charter and Our Code of Conduct, and is embodied in our tax principles. Read more Our commitment to transparency BHP has a long-standing commitment to transparency. We have disclosed details of our tax and royalty payments for more than 20 years and during that time we have continually updated and expanded our disclosures. The 2021 Economic Contribution Report meets the requirements of the Australian Voluntary Tax Transparency Code and aims to provide a greater understanding of BHP’s global tax profile, tax contributions and the manner in which we govern and manage our tax obligations. This year, our Economic Contribution Report 2021 reflects the requirements of the Global Reporting Initiative (GRI) Standard 207: Tax issued by the Global Sustainability Standards Board. FY2021 total economic contribution We are proud that in FY2021 we have continued to provide support to local businesses, regional and Indigenous communities, to protect local jobs and continue to pay taxes and royalties to governments. BHP’s total direct economic contribution for FY2021 was US$40.9 billion. This includes payments to suppliers, wages and benefits for around 80,000 employees and contractors, dividends, taxes, royalties and voluntary investment in social projects across the communities where we operate. Read more US$40.9bn Our total economic contribution in FY2021 US$11.1bn Income taxes, royalty-related income taxes, royalties and other payments to government US$8.7bn Dividend and interest payments Our tax principles Our contribution throughout the value chain Downloads Our tax principles 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 helps guide our daily work. It demonstrates how we practically apply the commitments and values set out in Our Charter. 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 FY2021, we conducted assurance that we have adhered to our Tax Principles. 1. Transparency We are transparent about the taxes and royalties that we pay to governments because we believe that 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 in which we operate. 2. Corporate citizenship We act with integrity when engaging with revenue authorities to support positive and sustainable 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 seek to identify, assess, control and report tax risks in accordance with our global Risk Framework. Risks identified as material are reported to the Risk and Audit Committee. More information is provided on page 16 of the Economic Contribution Report. 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 jurisdictions in which 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 the jurisdictions in which we operate. We do this because we believe that tax systems should be effective, efficient and competitive, in order to support economic growth, job creation and long-term sustainable tax contributions. Find out more Annual Report 2021 BHP performed strongly in FY2021, with no one fatally injured across BHP’s global operations, and record production and throughput in a number of businesses. Climate Transition Action Plan 2021 The resources we produce are essential, now and for the future. And the world will need even more of many of them to transition to renewable energy and support global economic growth. Sustainability Reporting 2021 We recognise sustainability is integral to the work we do at BHP, and have continued our refreshed approach to reporting in FY2021. © BHP 2021 About What we do Investors Sustainability Careers News Suppliers Contact us Keep in touch Follow BHP to stay up to date https://www.facebook.com/BHP https://www.linkedin.com/company/bhp/ https://www.twitter.com/BHP https://www.youtube.com/BHP Privacy Policy Modern Slavery Act Statement Terms of use Some cookies are strictly necessary for the operation of our website. We also use cookies to monitor your use of our website, compile aggregate data and provide you with a good experience when you browse our website. You can choose to accept or reject cookies, or manage your specific cookie options. For more detailed information on what cookies are and how they work, please read our Cookies Policy. Manage cookies Decline All Accept Cookie Preferences