CCHBC Publishes 5th Tax Transparency Report

Today, and even more in the future, companies must balance the interests of a broader stakeholder base. The influence of businesses on the environment and society is increasingly becoming critical factors shaping the preferences of customers and consumers, which in turn affects the long-term sustainability of enterprises. At CCH, we firmly believe that sustainability fosters value creation for our stakeholders and facilitates the socio-economic development of the communities in which we operate. Furthermore, we regard tax as an integral component of our ESG leadership. 

Specifically, our company attributes the utmost importance of earning societal trust in all tax matters. Our Sustainability Statement affirms our dedication to adhere to both the spirit and the letter of all pertinent tax laws, rules, and regulations within every jurisdiction in which we operate. Our Tax Policy delineates governance protocols and risk management best practices to ensure stringent tax compliance and accurate reporting across the Group. Furthermore, we monitor the dynamic tax reporting landscape to proactively prepare for imminent regulatory changes. In this context, we engage in collaboration with our tax advisers and statutory auditors to ensure our processes remain compliant and in alignment with industry’s best practices⁴. 

We stand firmly behind the principle of continuing paying taxes in the countries where value is created.  Moreover, we commit to maintaining transparency with tax authorities regarding the Group’s tax affairs, disclosing relevant information to enable tax authorities to conduct their reviews effectively, efficiently, and without undue delays. We support the communities in the countries where we operate directly by creating economic wealth, and indirectly, by fulfilling our tax obligations fairly.

The economic environment remains challenging, influenced by geopolitical volatility with noticeable impacts on regulation and taxation systems. These developments underscore the expansive implications of the global tax policy shift. As this landscape continues to evolve, businesses must remain vigilant, engage with relevant stakeholders proactively, and meticulously assess the potential impacts on their tax positions, operating models, and overall business strategies. Adopting a proactive and collaborative approach will be indispensable for businesses to navigate these changes effectively, mitigate risks, and position themselves for sustained success in the post-Base Erosion and Profit Shifting (BEPS) era.

At Coca-Cola HBC, we strive to adopt a proactive stance rather than a reactive one. Accordingly, we diligently monitor pertinent developments in the field of taxation to address all forthcoming requirements in a timely and robust manner. Nevertheless, we recognize that there is always room for further enhancement of our transparency and the consistent practice of responsible tax practices. Consequently, we collaborate with our tax advisors, statutory auditors, and tax authorities to ensure the accurate payment of taxes in the appropriate jurisdictions and in a timely manner. Additionally, we endorse best practice initiatives that aim to cultivate a more equitable and transparent tax environment.

The taxes we disclose in this report include corporate income tax calculated on each country’s taxable profit, payroll taxes and social security contributions, irrecoverable VAT, environmental taxes, product taxes and other categories of taxes including also taxes paid in specific jurisdictions based on local regulations applying. In 2024 we administered a total of  EUR 2.5 billion in taxes across all our jurisdictions. Out of that amount, EUR 1.02 billion reflect taxes borne by CCH operations (see also below ‘2024 CCH Tax contributions highlights’ section). 

We welcome constructive feedback from our stakeholders, recognising there may be areas where our disclosures can be further improved, and will be happy to address any questions that you may have.

^{4 2024 Integrated Annual report (pg.79)}