Total tax contribution

Calculating total tax contribution

Total tax contribution comprises the sum of taxes borne and taxes collected.

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 report data.
• 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.

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.

Data relating to certain taxes borne and collected by Shell are not included in this report. For example, we have not included property taxes, insurance premium taxes, customs duties and withholding taxes collected on dividends paid to shareholders.

The table below presents our total tax contribution for 2022 in 48 jurisdictions. This builds on the information we disclosed for 21 countries in our 2021 Tax Contribution Report.

Our total tax contribution for 2022 in these 48 jurisdictions was $56.60 billion. The figure includes $6.86 billion in taxes borne by Shell and $49.74 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 our Human Resources function. When numbers in the table are in brackets, Shell received tax refunds.

Shell also contributes significant amounts in property taxes each year. Property tax is typically levied by local authorities based on an appraised value of property. For Shell, property tax is generally levied on commercial and industrial properties that the company owns, such as refineries, chemicals parks, ports, terminals and retail facilities. Property taxes are often the largest source of annual revenues for local governments.