Our Tax Policy
We recognize that one of our obligations is to contribute to the communities we operate in. While meeting this obligation, we also have the responsibility to our shareholders to control our tax costs.
Our overall tax approach is in line with Ahold Delhaize’s overall business principles and code of conduct.
Tax Control Framework and Oversight
To assess and control tax risks we have a “Tax Control Framework” in place. For a summary of the main tax risks we refer to page 94 of our 2016 Annual Report. Effectiveness of this framework is regularly reviewed by the internal audit function.
The tax function reports to Ahold Delhaize’s CFO. At least once a year a tax risk update is presented by Tax to the Audit Committee of the Supervisory Board.
Ahold Delhaize communicates with the tax authorities in a transparent way based on mutual trust. In the USA we participate in the IRS Compliance Assurance Program/CAP and in the Netherlands we signed a transparency agreement with the Dutch tax authorities. The annual objectives for Ahold Delhaize’s tax department are shared with the Dutch tax authorities.
Being a company close to society we value a constructive dialogue regarding many aspects of taxation with the government in the countries we operate and to respond to government consultations on proposed changes to legislation with the aim to achieve sustainable legislation. We are also active members of industry bodies and chambers of commerce.
Compliance to Tax Regulations
We aim to file our tax compliance complete and timely and to discuss possible uncertainties about the tax treatment upfront with the tax authorities. This helps Ahold Delhaize to comply with local and international tax regulations.
Tax in the Annual Reports and Accounts
Our effective corporate tax rate over the past year was 23.7% and we paid €316 million of corporate income tax, including €201 million in the U.S., €54 million in the Netherlands, €13 million in Belgium and €33 million in Greece.
In addition, Ahold Delhaize collected and paid many other local taxes like (net) value added tax, payroll tax and social security premiums, property tax, sales and use tax, real estate tax, packaging tax, excise tax, customs duties etc. The total amount of these taxes exceeds €3 billion.