Total tax contribution

In the table below, we present our total tax contribution for 2020 in five key operating jurisdictions: the UK, the USA, the Netherlands, Nigeria and India. This information is aligned with our Powering Progress Strategy Day 2021 disclosure. 

Our total tax contribution for 2020 in these five jurisdictions was $19.4 billion. The figure includes $4.5 billion in tax borne by Shell and $14.9 billion in taxes collected by Shell in relation to its economic and employment activities.

These data have been compiled from other published Shell sources and our financial reporting systems. Where centrally held data are unavailable, we have gathered figures from in-country tax teams and Human Resources.

Tax definitions

Taxes borne are taxes that are a cost to Shell and comprise:

• Corporate income taxes: These numbers correspond to the “corporate income taxes paid” figures presented in “Our tax data” and are in line with our country-by-country reports.
• Employer taxes: These numbers represent employment-related taxes borne by Shell in respect of its role as an employer and include employer social security contributions and similar payments. They also include employer taxes borne by Shell's joint venture partners where Shell is responsible for managing the payroll of the joint venture.
• Other payments to governments: These numbers correspond to upstream-related payments included in our 2020 Payments to Governments Report, comprising royalties, production entitlements, bonuses, and fees.

Taxes collected are taxes that Shell does not directly incur but instead collects from its customers and employees on behalf of governments. These comprise:

• Indirect taxes: These numbers represent gross indirect taxes such as value-added tax (VAT), goods and services tax (GST) and duties arising on the products we sell. Indirect taxes on our purchases of goods and services, which may be borne by Shell or be available to offset and reduce the taxes paid directly by Shell to governments, are not included.
• Employee taxes: These include employee income taxes, employee social security contributions and similar payments. They also include taxes collected in joint ventures where Shell is responsible for managing the payroll of the joint venture.

Certain taxes borne and collected by Shell are excluded from this report. For example, property taxes and withholding taxes collected on dividends paid to shareholders.