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Payments to governments
Our operations generate revenue through taxes and royalties for governments around the world. This is the third year we are voluntarily publishing details of payments we have made to governments in some of the main countries where we operate.
In 2013, we paid globally $20.3 billion in corporate taxes, and $4.1 billion in royalties. We collected $80.9 billion in excise duties and sales taxes on our fuel and other products on behalf of governments. Shell’s effective tax rate over the past year was 51%.
We believe major companies like ours should be open on how much we pay to governments, and that governments should be transparent in how they use these funds. This is the third year we are voluntarily publishing details of payments we have made to governments in the main countries where we operate. In 2003 we became the first company to publish the royalties, taxes and other payments made to the Nigerian government, with their permission and support.
We believe that such transparency promotes good government, helping to ensure that the billions of dollars the energy industry pays in tax benefits society as a whole.
Extractive Industries Transparency Initiative
We are a founder and board member of the Extractive Industries Transparency Initiative (EITI).
The UK government launched the initiative in 2002 to increase the transparency of revenues governments receive from oil and mineral activities.
This includes payments made by companies like Shell, such as signature bonuses, taxes and royalties, and profits from state-owned companies.
Governments, agencies and companies in the oil, gas and minerals businesses support the initiative.
We believe that the EITI’s multi-stakeholder approach (which includes governments, non-governmental organisations (NGOs), regulators, the public and companies) remains the most effective way of providing transparency regarding government revenues, for resource dependent countries.