We build relationships between people, ideas, and territories to multiply opportunities and transform the present into a more sustainable and prosperous future. Wherever we operate in the world, we strive to be part of vibrant, inclusive, and ambitious communities. Through fiscal contribution, we embrace their challenges, invest in their skills and potential to jointly create a path of responsible development.
Total Tax Contribution
In 2023, our total tax contribution amounted to €2,533 million, consisting of 52% in tax borne that represent a cost for the Group, and 48% in taxes collected on behalf of governments and various local administrations.
Tax borne
Taxes directly incurred and paid with one's own resources, including income taxes, property taxes, and other fiscal obligations that constitute a financial burden for the payer.
Tax collected
These are taxes collected on behalf of the tax authority from third parties, such as customers or employees, including levies such as VAT and withholding taxes. They do not represent a direct cost.
Out Total Tax Contribution: Origins and Purposes
Key Indicators of the Group’s tax contribution
The amount of taxes paid during the year is related to the results achieved and the management of the Group. For every €100 of revenue generated by the Group, we paid €21.6 in taxes.
For each of our 23,000 employees, we paid €21,000 in People Tax.
Total Tax Contribution over Revenue
Tax borne over Pre-Tax borne Profit
Employment Taxes over number of employees
Tax contribution indicators specific to the main sectors
Motorways
Tax contribution on operated motorways kilometers
Tax contribution on motorways kilometers traveled
Airports
Tax contribution on airport passengers
Total Tax Contribution by Geographic Area
Our tax contribution is concentrated almost entirely in Europe and the Americas.
This data aligns with the distribution of revenue and the general business trends.
France, Italy, Spain, Brazil, and Chile account for 90% of the total tax contribution, 83% of the Group's revenue, and 74% of the employees.
- France
- Italy
- Spain
- Brazil
- Chile
- Mexico
France
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Italy
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Spain
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Brazil
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Chile
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Our Tax Contribution
Mexico
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Our Tax Contribution
TAX TRANSPARENCY REPORT
With the aim of providing maximum transparency, since 2021 we have been publishing the Tax Transparency Report annually.
The document offers a clear and immediate overview of the Group's tax contribution to the economic and social systems of the countries where we operate, reflecting our belief that taxation is a key element in the transition toward a fairer and more sustainable future.
Tax Strategy
Aware of the social importance of taxation, we have developed a Tax Strategy inspired by principles of responsibility and transparency, ensuring that tax management aligns with the values set forth in the Code of Ethics.
Tax Compliance
Commit to applying the tax rules provided for in treaties, EU regulations and laws of the jurisdictions in which the Group operates, ensuring compliance with both the letter and spirit of the tax laws. Should the legislation give rise to significant tax uncertainties, Mundys shall adopt a reasonable interpretation to be disclosed in advance to the competent Tax Authority.
Tax Risk Management
Adopt a Tax Control Framework, for tax risks management, continuously updated and in line with OECD recommendations and the criteria adopted by the Italian Tax Authority, to monitor the risk of incurring the violation of tax regulations or the abuse of principles and purpose of the tax system. Extend gradually the Tax Control Framework to the most relevant entities of the Group.
Tax Fairness
Ensure to pay the amount of taxes due according to the law and at the right time, without necessarily choosing to pay the highest amount. Therefore, Mundys is committed:
- towards the affected communities in which the Group operates to pay taxes as significant source of government revenue to their sustainable developments;
- towards its stakeholders, not to pay more taxes than is due under the law, ensuring in any event that it takes advantages of any legitimate tax savings and permitted tax benefits.
Aggressive Tax Planning
Adopt an approach to taxation that excludes the use of artificial constructions and the localization of profits in tax havens with the sole purpose of obtaining undue tax advantages in contrast with the purposes or the spirit of the provisions or of the relevant tax system. Monitor tax compliance with the key principles established in the Tax Strategy. Declare and remit taxes in the jurisdictions in which the Group has economic substance and carries out its effective economic activity.
Arm's lenght principle
Apply the arm's length principle for setting intercompany transactions in accordance with the OECD guidelines (Model Tax Convention and Transfer Pricing Guidelines).
Tax Authority Engagement
Ensure transparency and accuracy in relations with Tax Authorities, promoting adherence to cooperative compliance regimes for Group companies, that integrate the requirements set by the relevant domestic regulations and adhering to the provisions on the transfer pricing documentation.
Tax Reporting and Sustainability
Considering that tax matters fall under sustainability impacts, risks, and opportunities, present an annual publicly available Tax Transparency Report that provides investors with information to evaluate the adequacy of the established Tax Strategy, tax risk management processes implemented and the tax contribution to the jurisdictions where the Group operates (both in terms of taxes paid - Taxes Borne - and in terms of taxes collected - Taxes Collected).
Whistleblowing
Fully implement a global whistleblowing procedure, which provides anonymous channels for reporting any unlawful or justifiably suspicious conduct, including in tax matters, as well as for communicating any tax findings. Set up a special committee for the analysis and management of whistleblowing reports, with protections for the whistleblower and compliance with national and EU regulations.
Soft Controls
Encourage tax compliance culture and awareness of the value of compliance in the Group. There must be no management incentive schemes linked to undue reductions in the tax burden.
Responsible Tax Governance
An approach to taxation respectful of different stakeholders engaged, and that guarantees the highest level of accountability and disclosure on the adequacy of tax strategy and risk processes adopted.
Tone at the top
The Board of Directors defines Mundys Group’s tax strategy and oversees its application, as well as the effectiveness of the Tax Control Framework safeguards.
Tax Whistleblowing
The whistleblower protection procedure also applies to conduct that may involve breaches of tax legislation.
Tax Authority Engagement
The Group maintains a transparent relationship with the Tax Authority, including through cooperative compliance regime.
Intercompany Transactions
Mundys applies the arm's length principle in determining the terms and conditions of intercompany transactions, in line with internationally recognised standards.
Tax Fairness
Ensure the payment of taxes due, within the legally prescribed deadlines, observing the spirit as well as the letter of the law and ensuring that, at the same time, the Group enjoys legitimate tax benefits.
Tax Governance
The Group's Tax Governance system ensures proper tax management by assigning defined roles and responsibilities and promoting tax values and culture at all levels of the organization.
Tax Governance System: a 3-levels Tax Risk Management
The 3 lines of control
RISK OWNER (I LEVEL)
The tax unit and other line functions involved in various ways in the Tax Control Framework (risk owners) are responsible for first-level controls
TAX RISK OFFICER (II LEVEL)
The Tax Risk Officer conducts second-level controls and is responsible for revising and monitoring the first-level controls implemented through the Tax Control Framework
INTERNAL AUDIT (III LEVEL)
Internal Audit carries out third-level controls of the entire Internal Control and Risk Management System, including the Tax Control Framework
Our contribution stems from our values
We are a global Group.
The level of total tax contribution reflects the different regulations of the countries where we operate and the value generated by our activities.
Everywhere, with the same purpose: Improve moving life.
Mundys’ commitment to tax transparency has led our Group to be awarded a Fair Tax mark for the third year running. This certification comes as a further confirmation of Mundys’ ongoing commitment to sustainability and transparency, including with regard to tax. This is the result of significant, continuous improvement in the information made available to our stakeholders, thanks to collaboration between Group companies and with the tax authorities in the countries in which Mundys operates.
KPMG has performed a limited assurance review of the data used to prepare the 2023 Tax Transparency Report.
Click here to access the complete report