Tax Transparency Report
The countries included in the report represent more than 99% of total Enel Group revenues and more than 99% of income taxes paid. The distribution of the total contribution in the various countries in which the Group operates is approximately 85% concentrated in Italy, Spain and Brazil which represent approximately 84% 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 2022 amounted to 13,980 million euro: 34% of the Total Tax Contribution relates to payments that represent a cost for Enel (taxes borne) and the remaining 66% to payments made as a result of recourse mechanisms, substitution, etc. (taxes collected).
Breakdown - Taxes borne
Taxes borne by Enel in 2022 amounted to 4,778 million euro. Most of this total corresponds to profit taxes, which account for 40,3% of taxes borne. Product and service taxes tax and Employment tax respectively to 21,2% and 16,9% of the total.
Breakdown - Taxes collected
Taxes collected by Enel in 2022 amounted to 9,202 million euro. Taxes on products and services (mainly VAT) represent 66% of tax collected by Enel due to specifics of its business and high volume of turnover, especially in Italy, Spain and Brazil.
- 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.
- 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.