TAXES: CONTRIBUTIONS, PRINCIPLES AND GOOD PRACTICES
Grifols upholds its commitment to contributing toward economic, social and industrial development through rigorous compliance with the tax laws in force in each jurisdiction and in line with OECD Guidelines for Multinational Enterprises.
Its diverse operations generate direct and collected taxes, which are paid to tax authorities.
The group’s tax strategy is guided by ethical principles which are reflected in its contributions.
Grifols is taxed on the profits generated in the territories where it operates. Spain and the United States generate approximately 70% of the group’s global revenues and the main industrial and R+D+i complexes are mainly located in these countries.
* After-tax profits in 2019 excluding dividends and impairments.
** Net tax payable related to fiscal year 2019.
In Spain, EUR 17.6 million was collected in the 2019 fiscal year as a result of anticipated tax payments above the net tax payable corresponding to previous years.
Grants received in Spain correspond mainly to employee-training initiatives.
Grifols’ fiscal policy
GRIFOLS ADHERED TO THE GOOD TAX PRACTICES CODE
GRIFOLS HAS NO PRESENCE IN TERRITORIES CLASSIFIED AS TAX HAVENS. ALL ITS OPERATIONS ARE Reported IN ITS ORDINARY INDUSTRIAL AND COMMERCIAL ACTIVITY
- For Grifols, tax compliance is a core element of its Corporate Social Responsibility policy, as well as a pillar of its economic contribution and social commitment. The payment of required taxes fully aligns with the economic activities in all jurisdictions where the Group operates.
- Grifols has no operations in territories qualified as tax havens. Its commercial operations with third parties based in such territories, or any others, are carried out as part of its ordinary industrial or commercial activity.
- In line with international taxation principles and recommendations by the OECD Committee on Tax Matters, Grifols rejects artificially shifting results to such territories or taking advantage of the information opacity that these territories may offer. Transparency in tax-related matters is a cornerstone of Grifols’ tax policy.
- Grifols’ system of internal information and control procedures significantly mitigates fiscal risk which allows to manage tax matters in an orderly and expert manner.
- Grifols’ tax policy is guided by a reasonable and prudent interpretation of the tax regulations in force in each jurisdiction.
- The company consults with reputable independent tax advisors before making business decisions that could have a tax impact.
- Grifols follows a transfer pricing policy for all operations with related parties that aligns with the principles of the main competent international organizations. This policy is reviewed on an annual basis.
- Grifols understands and supports tax contributions that adequately correlate with the structure and location of its activities, resources, human resources, and materials and business risks assumed.
- Grifols does not use artificial structures unrelated to its activity to reduce the tax burden or for profit-shifting.
- Grifols fosters a cooperative and fluid relationship with tax authorities based on respect for the law, trust, good faith, reciprocity and cooperation.
- Grifols collaborates with the competent tax authorities to seek solutions to achieve certainty and stability in the fiscal criteria to be applied by the administration and to give priority to non-litigious dispute resolution channels.
- In alignment with its commitment to transparency, Grifols does its utmost to provide complete information and documentation requested by tax administrations in the shortest timeframe possible.
- On October 26, 2018, the Board of Directors of Grifols adhered to the Code of Good Tax Practices.