Tax footprint

Companies and organisations are expected to act responsibly and report on their operations more transparently than before. There are calls for increased openness of reporting taxes and tax-like payments as well. We help you meet these expectations and define sensible limits for your company’s tax reporting.

What does tax footprint reporting mean?

  • The tax footprint is a reporting method that describes the taxes accumulated for society by company operations.
  • A tax footprint report describes the effects of company operations and their distribution among different countries.
  • There are no commonly agreed or established models for calculating and presenting the tax footprint.
  • At the moment tax footprint reporting is voluntary for companies, but many companies report their tax footprint as part of their corporate responsibility report.

How does tax footprint reporting benefit the company?

  • Emphasises the financial impact company operations have on society.
  • Helps understand the company’s tax expenses.
  • Helps report and communicate taxes openly.

What are your challenges?

  • The required information for determining the tax footprint is difficult to find, or it must be gathered manually from different sources.
  • It is difficult to gather the essential information because taxes and tax-like payments vary among countries.
  • Essential information is related to particular companies and is, for example, industry-specific.
  • Increasing regulation calls for new types of processes.

How can we help?

  • We map the relevant information required for your company’s tax footprint.
  • We design processes for your company (e.g. a proposition to improve systems)
  • We gather information of taxes paid by your company (e.g. taxes paid vs. taxes accounted for).

Tax footprint reporting

Basic level: Using current information

Use information available in accounting to determine the tax footprint of your company.

Prepare to answer public questions on your company’s tax footprint.

Make sure that key persons are familiar with your company’s financial effects on society.

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Average level: More extensive reporting of tax effects

Find out which taxes your company pays in different countries of operation or production.

Find out which taxes and tax-like payments affect your company’s total tax rate.

Find out which sources constitute the taxes paid by your company.

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Extensive level: Actively communicating tax strategy and tax footprint

Transparently describe tax strategy and tax management.

Identify the business risks caused by taxation.

Ensure that the Board of Directors understands the connection between tax strategy and long-term success of the company’s business.

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Contact us

Iain McCarthy

Iain McCarthy

Partner, Tax Reporting & Strategy

Tel: +358 (0)20 787 7975

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