Fiscal transparency and good practices
Transparencia
On 21 February 2017, the Board of Directors of Aena approved the Fiscal Strategy of Aena S.M.E., S.A. With this strategy, it aims to:
- Manage tax matters in a proactive, responsible and transparent manner with all of our stakeholders.
- Comply with current tax legislation.
- Minimise the reputation risk by making the strategy compatible with protecting the value of shareholders.
Since April 2017, we have adhered to the Code of Good Tax Practices, approved by the Large Companies Forum according to the wording proposed by the State Tax Administration Agency (AEAT).
Transparencia fiscal
Transparency
Access to clear and truthful information within the limits of legality, providing relevant tax information that affects Aena's own activity to stakeholders.
Integrity
Ethics in the actions of the companies in which control is maintained and in relations with stakeholders, with observance of the tax regulations and a cooperative relationship in good faith with the Tax Administrations.
Prudence
The prior assessment of the tax implications derived from the Group's decisions.
Tax practice
1
Will not set up companies or conduct operations in tax havens in order to circumvent its tax obligations.
2
Will not use artificial tax structures unrelated to the Group’s business operations for tax evasion purposes.
3
Will not use opaque structures intended to prevent or impede identification by the tax authorities of the party ultimately responsible for business operations or of the ultimate owner of the assets and rights involved in them.
4
Will assess the exposure to tax risk of the decisions that it adopts taking into account the tax impact in the short and long term, the impact on its corporate reputation, the impact for shareholders and customers, the impact on its relationship with governments and tax authorities, and the impact on other areas of the organisation.
5
Transfer pricing policies for related party transactions will be based on transactions carried out at market value provided there is no legal limitation and based on the principles of free competition, value creation and assumption of risks and benefits.
6
Will maintain a relationship with the tax authorities based on the principles of transparency, mutual trust and good faith and will provide any information and documentation with tax implications requested from it as soon as possible and with the required scope as long as it is reasonable.
7
Will request the services of independent tax experts of proven standing both for reviewing the tax principles it implements and also for checking compliance with its tax obligations whenever necessary.
8
In case of conflicting tax interpretations, the Group will assess the possibility of confirming the tax treatment which is applicable with the relevant authorities.
9
Will follow the recommendations of the codes of good tax practices that are implemented in the countries in which it operates or in which the companies of the Group controlled by AENA, operate.
10
Will collaborate with the tax authorities in any inspection procedures in order to come to agreements and approvals in such procedures to the extent possible and without Corporate Tax Policy of Aena, S.M.E., S.A. Page 4 of 4 impairing good corporate governance and the legitimate right to disagree in case of disputes.
Monitoring and control
- Necessary control mechanisms will be provided to ensure, as part of an appropriate business management model, compliance with tax legislation and the above principles.
- Our Internal Financial Information Control System (SCIIF) has included specific controls related to Financial Risk Management that affects all departments in the Entity related to tax information. Its purpose is to ensure proper compliance with its obligations to the Tax Authorities.
- The control system is structured in cascade form, establishing supervision of evidence of compliance with the tax obligations by the Tax and Fiscal Management Department Head. Finally, the head of the Accounts Office supervises proper compliance with the fiscal obligations.
- The SCIIF provides the necessary traceability, which makes it possible to determine, at all times, whether the preliminary fiscal control protocols are being observed in each and every one of the areas classified as potential fiscal risk. Likewise, the Internal Audit reviews the system controls to ensure they are consistent.
- The head of the Accounts Office will report to the Board of Directors at least twice a year, coinciding with the formulation of the Annual Accounts, as well as with the Corporate Tax Declaration, on the fiscal policies applied and the transactions with a relevant fiscal impact.
Dissemination and updating
This tax strategy is intended to be permanent, although its content may be modified or updated where required by the applicable regulations or the competent body of AENA, S.A. The AENA tax policy, which is aligned with best practice in the field of taxation, will be disseminated by incorporating it into the Company’s website.
Total tax contribution
Aena's tax contribution in 2020 amounted to €223.1 million.
Taxes paid by Aena during the year amounted to €182.3 M, being the most important taxes associated with employment amounting to €167 M.
Taxes collected by Aena in the period amounted to €40,8 M, being the most important withholding taxes, that amounted to €58.1 M, and VAT returns, that amounted to €126 M.
primary,dark
82%,18%
82%
(182,3)
Tax paid
18%
(40,8)
Tax collected
Distribution by tax type
The next chart shows the distribution of Aena’s €223.1 M tax contribution.
- Income tax, which includes Business Activities Tax (IAE), amounted to €31.5 M (7% of the total).
- Employment taxes (Social Security contributions and personal income tax withholdings) account for €167 M (35%).
- Property taxes contribute €147 M (31%).
- The rest of taxes contribute €4 M (2.5%).
- This year, input VAT refunds have been received for an amount of €126 M.
dark,primary,gris-azulado,naranja,violeta
7%,31%,35%,24.5%,2.5%
7%
Income tax
31%
Property tax
35%
Employment tax
24.5%
Product and service tax
2.5%
Other taxes
Tax contribution by country
Aena SME, S.A. is a state-owned company that manages general interest airports and heliports in Spain. Through its subsidiary company Aena Internacional it also participates in the management of other international airports abroad.
Aena has consolidated the operations of Luton airport in the UK and ANB.
In 2020, the Aena group paid a total of €223.1 M in taxes.
| Ordinary revenue | Profit/loss before tax | Taxes paid | |
|---|---|---|---|
| Spain | 2.054,0 | -78,1 | 207,1 |
| United Kingdom** | 102,0 | -70,7 | 11,4 |
| Brazil** | 25,0 | -79,5 | 4,7 |
| Total | 2.181,0 | -228,3 | 223,1 |
* Million euros.
** Figures for the United Kingdom and Brazil are expressed in euro using the average exchange rate for the period.
Accounting Profit/(Loss) and Corporate Income Tax
The next chart shows the reconciliation of the accounting profit/(loss) and the corporate income tax expense.
| Tax calculated at national applicable rate | 53.158 |
| Profit/(loss) from associates net of taxes | 268 |
| Effect of lower rate applicable to LLAH III | -4.002 |
| Non-deductible expenses for tax purposes | -7.712 |
| Capitalisation reserve | 0 |
| Tax deductions recorded in the year with the Tax group | 8.018 |
| Tax adjustments in England | -5.706 |
| Effect of higher rate applicable to ANB | 7.125 |
| Adjustment of previous periods | 864 |
| Other | -128 |
| TAX EXPENSE | 51.885 |
| Profit/(loss) before tax | -212.633 |
The most representative deductions in quota registered correspond to the deduction for investments in the Canary Islands.
The effective corporate income tax rate* came to -24.40% in 2020.
* Effective rate measured as the ratio between tax expense and pre-tax profit.
Good tax practices
Aena signed up in April 2017 in furtherance of the principles and guidelines for tax action set out in its tax strategy.
Las Buenas Prácticas Tributarias están definidas en el Código como “todas aquellas que conduzcan a la reducción de riesgos fiscales significativos y a la prevención de aquellas conductas susceptibles de generarlos”.
Good Tax Practices are defined in the Code as “all those practices which lead to a reduction in significant tax risks and the avoidance of conduct liable to produce them”.
Three large groups of best tax practices:
- Transparency, good faith and cooperation with AEAT in business tax practice.
- Transparency and legal certainty in application and interpretation by AEAT.
- Minimisation of litigation and conflicts.
You can consult the Code of Good Practices and the companies that signed up it through this link to the AEAT website:
You can get more information about the Aena corporate responsability policy and transparency through this link:
