Payments to governments
Our operations generate revenue through taxes and royalties for governments around the world. These taxes and royalties are often used by governments to fund essential public services like education, transport and healthcare.
Since 2016 Shell has made mandatory disclosures under the UK’s Reports on Payments to Governments Regulations 2014 (amended December 2015). We have published the revenues that our operations generate through taxes and royalties on a voluntary basis since 2012. We believe that being open about our tax payments helps people to understand how much we pay and why.
In 2020, Shell paid $47.3 billion to governments. We paid $3.4 billion in corporate income taxes and $3.5 billion in government royalties. In addition, we collected $40.4 billion in excise duties, sales taxes and similar levies on our fuel and other products on behalf of governments.
The 2020 Payments to Governments Report details payments in 24 countries where Shell has Upstream operations, including the basis of reporting and a breakdown by country. The report is prepared in accordance with the UK’s Reports on Payments to Governments Regulations 2014 (amended December 2015). This is the sixth report issued by Shell under such regulations.
Shell separately, and voluntarily, publishes its Tax Contribution Report and this has a different reporting basis. The report outlines Shell’s approach to tax and taxes paid and covers 99 countries and locations across all our businesses. For the detailed basis of reporting of these publications we refer to the Payments to Governments Report and the Shell Tax Contribution Report respectively.
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Shell does not condone, encourage or support tax evasion, and is committed to implementing procedures to prevent anybody employed or contracted to Shell or acting on Shell’s behalf facilitating the evasion of tax.
The Tax Contribution Report is an important move for Shell towards greater transparency around our approach to paying taxes, and aims to offer a deeper understanding of our principles and actions in this area.
The payment of taxes is a central link between Shell and the countries and communities where we operate. It is a vital part of our contribution to national economies and people’s lives.
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At Shell, we share a set of core values – honesty, integrity and respect for people – which underpin all the work we do. The Shell General Business Principles, Code of Conduct, and Ethics and Compliance Manual help everyone at Shell act in line with these values and comply with relevant laws and regulations.