Tax Transparency Report

As of 2018 (2018-2017), we have adopted a Total Tax Contribution model for the main countries where we operate, providing evidence of taxes paid and withheld.

Beginning 2020 we adopted an integrated model: Tax Transparency Report. This is prepared for all countries consistently with the rules provided for under OSCE Country-by-Country Report and includes information and data for Total Tax Contributions in the main countries where we are present. The Group believes that this model ensures a broad vision and a detailed measurement of the organization’s contributions to economic and social development in the regions/countries in which it operates.

The Report is completely aligned to the provisions provided by the Global Reporting Initiative (“GRI”) Standard 207, by the white paper “Measuring Stakeholder Capitalism Towards Common Metrics and Consistent Reporting of Sustainable Value Creation” del World Economic Forum (“WEF”) and to the Responsible Tax Principles developed by B Team.

 

Geographic distribution of the tax contribution

The map shows the Enel Group’s Total Tax Contribution in the main countries where it operates. In 2021, this amounted to 11,514 million euro.

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The countries included in the report represent more than 99% of total Enel Group revenues and practically 100% of income taxes paid. The distribution of the total contribution in the various countries in which the Group operates is approximately 83% concentrated in Italy, Brazil and Spain, which represent of approximately 83% of Group revenues.

For details on minor countries, please refer to the Tax Transparency Report and the Sustainability Report.

 

Total Tax Contribution

Total Tax Contribution in 2021 amounted to 11,514 million euro in 2021: 36% of the Total Tax Contribution relates to payments that represent a cost for Enel (taxes borne) and the remaining 64% to payments made as a result of recourse mechanisms, substitution, etc. (taxes collected).

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Description Target Price (€) Recommendation Analyst
Taxes borne 36.00
Taxes collected 64.00
Medium Target Price € 50.00

Item

Amount (M/€)

Taxes borne

4,126

Taxes collected

7,387

Breakdown - Taxes borne

Taxes borne by Enel in 2021 amounted to 4,126 million euro. Most of this total corresponds to profit taxes, which account for 44% of taxes borne. Employment and product and service taxes amount respectively to 19% and 17% of the total.

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Description Target Price (€) Recommendation Analyst
Taxes on products and services 17.00
Environmental taxes 13.00
Profit taxes 44.00
Employment taxes 19.00
Property taxes 7.00
Medium Target Price € 20.00
Taxes borne UM

Total 2021

Profit taxes
€/mil

 1,808

Property taxes
€/mil

311

Employment taxes
€/mil

 779

Taxes on products and services
€/mil

694

Environmental taxes
€/mil

534

Total

4,126

Breakdown - Taxes collected

Taxes collected by Enel in 2021 amounted to 7,387 million euroTaxes on products and services (mainly VAT) represent 58% of tax collected by Enel due to specifics of its business and high volume of turnover, especially in Italy, Brazil and Spain.

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Description Target Price (€) Recommendation Analyst
Taxes on products and services 58.00
Profit taxes 2.00
Environmental taxes 26.00
Employment taxes 14.00
Medium Target Price € 25.00
Taxes collected UM

Total 2021

Profit taxes
€/mil

169

Property taxes
€/mil

1

Employment taxes
€/mil

1,029

Taxes on products and services
€/mil

4,282

Environmental taxes
€/mil

1,906

Total

7,387

Total Tax Contribution Rate
54.8%
The Total Tax Contribution Rate (TTCR) is equal to 54.8% in 2021. TTCR reveals the share of taxes borne on total profit before taxes borne.
Total Tax Contribution with respect to turnover
10,3%
For every 100 euro of revenue generated, 10.3 euro were used in payment of taxes, of which 3.7 euro were taxes borne and 6.6 euro were taxes collected.
Current Income Tax rate
43.4%
The Current Income Tax Rate is determined as the ratio between corporate income taxes accrued on profit/loss (Current taxes) and the profit before income tax.
Effective Tax Rate (ETR)
29.9%
The ETR represents the incidence of the overall tax burden (accounted for) on the statutory result and is determined as the ratio between the total income taxes recorded in the financial statements and the consolidated profit before income tax.
Cash Tax rate
34.3%
The Cash Tax Rate represents the incidence of the tax burden, expressed in terms of taxes paid on the statutory result and is determined as the ratio between the corporate income taxes paid and the profit before income tax.

Glossary

Taxes borne

Taxes borne are direct costs to Enel, which are the taxes that Enel has paid to the tax authorities of various jurisdictions, i.e., income taxes, social contributions, property taxes, etc.

Taxes collected

Taxes collected are the taxes that have been paid as a result of economic activities of Enel, they are not part of Enel’s own costs. Here the company is collecting taxes from others, on behalf of government, i.e., income taxes collected from employees under a payroll system.

Total Tax Contribution (TTC)

Sum of taxes borne and collected, measures the Group's effective tax contribution in the jurisdictions in which it operates.

Total Tax Contribution Rate

The Total Tax Contribution Rate is an indicator of the cost represented by taxes borne in relation to profit obtained. The Total Tax Contribution Rate is calculated as the percentage of taxes borne with respect to profit before such taxes, based on Enel’s activities in the countries which are covered by the Tax Transparency Report.

TTC with respect to turnover

TTC with respect to turnover is an indicator that reflects the extent of the contribution made by the Group in relation to the size of its business. The indicator is calculated as Total Tax Contribution divided by revenues.

Cash Tax rate

The Cash Tax Rate represents the incidence of the tax burden, expressed in terms of taxes paid on the statutory result and is determined as the ratio between the corporate income taxes paid and the profit before income tax.

Current Income Tax rate

The Current Income Tax Rate represents the incidence of the current (accounted for) tax burden on the statutory result and is determined as the ratio between corporate income taxes accrued on profit/loss Current taxes and the profit before income tax.

Effective Tax Rate (ETR)

Represents the incidence of the overall tax burden (accounted for) on the statutory result and is determined as the ratio between corporate income taxes accrued on profit/loss and the Profit before Tax. Differently from the Current Income Tax Rate, in addition to current taxes, taxes also include (i) provisions for tax liabilities not yet certain in their amount or existence, (ii) tax adjustments related to previous years, and (iii) deferred tax assets and liabilities.