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Tax contribution 2013

Neste Oil provides a tax and duty overview. Company has published voluntary reports of taxes already for several years. This developed report includes material taxes and duties divided by type and by split between Finland and other countries.

The tax strategy of the company is to support Neste Oil's business decisions and ensure their proper implementation also from tax perspective. Tax planning follows the business changes and rationale of the company and taxes and duties are paid, collected, remitted as well as reported according to respective local laws. Neste Oil is committed to follow local laws as well as OECD Transfer Pricing Guidelines and transfer prices are based on public quotations whenever applicable quotation is available. High-quality tax compliance is the corner stone of Neste Oil's tax management. Company contributes continuously to tax law drafting and practice development and is in favour of fair, clear and consistent tax system.

Neste Oil has active companies in a couple of low tax jurisdictions because of sound business reasons. The captive insurance company in Guernsey pays corporate income tax in Finland according to Finnish tax laws. The income derived from shipping joint ventures in Bermuda is taxed according to Finnish tax laws in Finland only when the funds are repatriated to Finland.

The report includes such taxes and levies which Neste Oil is liable to pay or collect according to local law. However, such taxes or levies which are included in the purchase price of a product or a service are not reported in this overview unless Neste Oil is liable to report such tax or levy. If a foreign Group company was liable to pay tax in Finland, such tax is reported among Finland in our figures, and not in corresponding foreign figures.

Taxes of 2012–2013 

Taxes borne, MEUR  2012  2012  2012  2013  2013 2013
 

Finland

Other countries Group in total Finland  Other countries Group in total
Corporate income tax 25 34 59 76  18  94
Real estate tax 1 5 6 1 6 7
Employer's charges 5 8 13 4 7 11
Environmental taxes 22 0 22 23 1 24
Customs duty 7 1 8 2 1 3
Total taxes borne, MEUR 60 48 108  106 33 139
             
Taxes collected, MEUR            
VAT/GST, remitted 1,214 184 1,398 997 214 1,211
Excise taxes 2,024 237 2,261 1,480 204 1,684
Withholding taxes 65 10 75 69 8 77
Employee's social security 14 3 17 15 3 18
Total taxes collected, MEUR 3,317 434 3,752 2,561 429 2,990

 

  2012 2012 2012 2013 2013 2013
Total taxes borne and collected, MEUR

3,377

482 3,860 2,667 462 3,129

 

Key term definitions:

Corporate income tax – All current taxes that are based on the taxable profit of a company during the respective calendar year and current tax adjustments for prior years (deferred taxes are excluded).

Customs duty – Legislative duties levied on imports and exports payable to EU or to governments in other customs territories during a fiscal year.

Environmental taxes – Taxes and levies imposed for environmental reasons.

Excise taxes – Taxes collected for certain products delivered for consumption or taken into use for the periods of a fiscal year. Excise taxes include strategic stockpile fees.

Real estate tax – Any taxes and duties paid based on ownership, posess, or usage of real estates as defined in respective legislation.

Taxes – Material, compulsory taxes, duties, charges, and levies payable to government and governmental body.

Taxes borne – Taxes that the Group is obliged to pay to governments and governmental bodies on its own behalf.

Taxes collected – Taxes which the Group is obliged to pay to governments and governmental bodies on behalf of another person or corporation, such as withholding taxes collected from the salary of personnel.

VAT/GST, remitted – Net amount amounting to VAT payable less the VAT deductible remitted to governments for the VAT periods of a fiscal year. VAT includes similar sales taxes.

Withholding taxes – Tax charged on salaries, dividends, royalties and interest on behalf of individual or corporation.