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Argentina

Employees

192

Total tax contribution

$9,751,609

Taxes borne

$4,430,532

Taxes collected

$5,321,077

Third-party revenues

$599,219,571
Related-party revenues

$321,582,830
Total revenues

$920,802,401
Profit before tax

$285,832,040
Corporate income tax paid

$290,786
Corporate income tax accrued

$57,967,679
Stated capital

$2,190,400,805
Accumulated earnings

$(614,610,840)
Tangible assets

$2,165,748,105
Other payments to governments

$78,072,200

Shell's footprint

Shell has been present in Argentina since 1914. We have upstream and midstream activities in the Neuquén Basin, where we operate four blocks, participate in three blocks operated by other companies, and own an oil pipeline together with two other companies. Shell also has an interest in a block in the province of Salta. Additionally, Shell has exploration activities in three offshore blocks in the Argentina Norte Basin: two are Shell-operated joint ventures with QatarEnergy, and a third is with Equinor and YPF, the national oil company of Argentina. The Shell brand is present in the country through a brand licence agreement with Raízen, a joint venture between Shell and the Brazilian company Cosan.

Country financial analysis

The statutory corporate income tax rate in Argentina is 35%. Shell Argentina S.A. has reported losses since 2013 because of exploration and development costs incurred mainly in the Neuquén Basin. The increase in revenues in 2022 is the result of almost double production volumes compared with 2021 and higher global oil and gas prices. This also explains the change from a net loss in 2021 to a profit before tax in 2022. The corporate income tax paid figure reported is related to social security payments. No corporate income tax was paid because of losses carried forward from previous years. Our Payments to Governments Report for 2022 shows that Shell paid around $78 million in royalties and fees.

Read more in Total tax contribution and in Payments to Governments Report(shell.com/payments-to-governments).

Corporate income tax

This is a direct tax imposed on companies’ profits. It is sometimes levied at a national level but can also be levied on a state or local basis.

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Corporate income tax paid

This comprises corporate income tax paid in 2022, as recorded in Shell's Consolidated Statement of Cash Flows, and includes accrued withholding taxes on dividend, interest and royalty payments to Shell entities. In some cases, this may include payments made in relation to previous years or future years as tax payments are often made in arrears or in advance. It does not include withholding taxes collected by Shell on dividends paid to shareholders. Nor does it include corporate income tax paid by non-consolidated joint ventures and associates.

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Country

Throughout this report, “country” is used as the primary descriptor for a geographical area because that is the word used by the OECD/G20 base erosion and profit shifting project in their proposal for country-by-country reporting. This is one of the four minimum reporting standards to which around 135 countries have committed, covering the tax residence jurisdictions of nearly all large multinational enterprises. In this report “country” may also refer to locations, jurisdictions or territories which have their own tax regimes or discrete rules.

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Fees

Fees and other sums paid as consideration for acquiring a licence for gaining access to an area where extractive activities are performed. Administrative government fees that are not specifically related to the extractive sector, or to access to extractive resources, are excluded from this report. Also excluded are payments made in return for services provided by a government.

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Profit before tax

Profit or loss before tax is reported in Shell's Consolidated Statement of Income. This is the profit or loss calculated using Group accounting policies. Local statutory accounts may need to comply with local accounting standards which may be different. The local statutory accounting profit or loss is the basis for the calculation of taxable profits in individual countries or locations. Local tax laws are then applied to the profit or loss. Profit before tax shows the Group accounting result but not the profits subject to tax after compliance with local tax laws. Any share of profit or loss from non-consolidated joint ventures and associates is attributed to the country where the shareholding entity is based. This figure is reported after accounting for corporate income tax accrued in the joint venture or associate's accounts and is included in the shareholding entity's profit before tax.

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Royalties

Royalties are generally payments due for the use of an asset. Mineral royalties are payments to governments or other owners for the rights to extract oil and gas resources, typically at a set percentage of revenue less any deductions that may be taken. See Trademark royalties.

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