TIDMBHP
RNS Number : 6405L
BHP Group PLC
13 September 2021
Issued by: BHP Group Plc
Date: 14 September 2021
To: London Stock Exchange
JSE Limited
For Release: Immediately
Authorised for lodgement: Prakash Kakkad +44 (0) 20 7802 7077
------------------------- -----------------------------------
BHP Group Plc - Economic Contribution Report 2021
--------------------------------------------------------------
Introduction
Our Economic Contribution Report (Report) for the year ended 30
June 2021 was released today.
In the past 12 months, the COVID-19 pandemic has brought human
tragedy and economic disruption globally.
However, against this backdrop of unprecedented challenge, our
people continued to support one another and kept our operations
running safely. This enabled us to continue to provide significant
support to local businesses, regional and Indigenous communities,
to protect local jobs and continue to pay taxes and royalties to
governments.
BHP's purpose is to bring people and resources together to build
a better world. We are proud of the valuable contribution we make
to communities where we operate and to society as a whole. The
economic contribution we make is an important part of this. This
significant contribution of taxation and royalty revenue to the
countries where we operate gives governments the opportunity to
provide essential services to their citizens and invest in their
communities for the future.
BHP has a long-standing commitment to transparency. We have
disclosed details of our tax and royalty payments for more than 20
years and during that time we have continually updated and expanded
our disclosures. This Report meets the requirements of the
Australian Voluntary Tax Transparency Code and aims to provide a
greater understanding of BHP's global tax profile, tax
contributions and the manner in which we govern and manage our tax
obligations. This year, our Economic Contribution Report 2021
reflects the requirements of the Global Reporting Initiative (GRI)
Standard 207: Tax issued by the Global Sustainability Standards
Board.
BHP is subject to the different tax regimes that apply in each
of those countries and complies with applicable taxation laws in
all the jurisdictions where we operate, including the Organisation
for Economic Co-operation and Development (OECD) Country-by-Country
reporting measures. This information provides tax authorities
around the world with details of how we conduct our business and
how BHP's international-related parties transact with
each other.
Our Economic Contribution Report 2021 has today been submitted
to the FCA National Storage Mechanism and will shortly be available
for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism . It is also
available to be downloaded on the BHP website at:
https://www.bhp.com/-/media/documents/investors/annual-reports/2021/210914_bhpeconomiccontributionreport2021.pdf
BHP's total direct economic contribution for FY2021 was US$40.9
billion. This includes payments to suppliers, wages and benefits
for around 80,000 employees and contractors, dividends, taxes,
royalties and voluntary investment in social projects across the
communities where we operate.
In FY2021, our tax, royalty and other payments to governments
totalled US$11.1 billion. Of this, 84.7 per cent or US$9.4 billion
was paid in Australia. During the last decade, we paid US$84.0
billion globally in taxes, royalties and other payments, including
US$65.4 billion (approximately A$80.3 billion) in Australia.
Below are extracted sections of our full Economic Contribution
Report 2021 that together meet the UK Regulations.
Our payments to governments
BHP has prepared this information in accordance with the UK
Regulations. Our Report addresses BHP's reporting obligations under
DTR 4.3A of the Financial Conduct Authority's Disclosure Guidance
and Transparency Rules. The 'Basis of preparation' and 'Glossary'
contain information about the content of the Report and form part
of the Report.
Payments made by country and level of government
The information on taxes paid by classification and country
presented below has been prepared on the basis set out in the
'Basis of Report preparation' section of the Report.
US$ millions Corporate Royalty-related Taxes Total Royalties Production Fees Payments Signature, Total Other Total
income income levied taxes entitlements for discovery payments payments payments
taxes taxes on paid infrastructure and as defined to
production improvements production by the governments
bonuses UK
Regulations
Total payments to
governments 7,206.0 392.5 27.8 7,626.3 2,850.0 156.0 98.0 5.7 - 10,736.0 325.9 11,061.9
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Algeria (1) - - - - - 86.3 - - - 86.3 - 86.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Directorate General
of
Taxes - - - - - 86.3 - - - 86.3 - 86.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Australia (2) 6,027.0 267.4 27.8 6,322.2 2,721.7 - 24.8 5.3 - 9,074.0 299.5 9,373.5
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Australian Taxation
Office 6,027.0 267.4 27.8 6,322.2 - - - - - 6,322.2 24.8 6,347.0
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Central Highlands
Regional
Council - - - - - - - - - - 2.6 2.6
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Coal Mining Industry
Long
Service - - - - - - - - - - 17.7 17.7
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Department of Mines,
Industry,
Regulation and
Safety
(Western Australia) - - - - 81.6 - - - - 81.6 - 81.6
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Isaac Regional
Council
(Queensland) - - - - - - - - - - 10.7 10.7
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Mackay Regional
Council
(Queensland) - - - - - - - - - - 0.6 0.6
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Muswellbrook Shire
Council
(New South Wales) - - - - - - 0.1 - 0.1 3.6 3.7
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Shire Of Ashburton
(Western
Australia) - - - - - - - - - - 1.9 1.9
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Shire Of East
Pilbara
(Western Australia) - - - - - - - - - - 2.7 2.7
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Shire Of Leonara
(Western
Australia) - - - - - - - - - - 0.8 0.8
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Shire Of Wiluna
(Western
Australia) - - - - - - - - - - 1.1 1.1
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
State Of New South
Wales - - - - 62.3 - 1.9 0.1 - 64.3 9.5 73.8
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
State Of Queensland - - - - 300.3 - 2.0 4.6 - 306.9 62.4 369.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
State Of South
Australia - - - - 76.3 - 2.2 - - 78.5 21.5 100.0
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
State Of Victoria - - - - - - - - - - 6.7 6.7
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
State Of Western
Australia - - - - 2,201.2 - 16.7 - - 2,217.9 115.5 2,333.4
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Town Of Port Hedland
(Western
Australia) - - - - - - - - - - 15.7 15.7
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Municipal Council of
Roxby
Downs - - - - - - - - - - 1.1 1.1
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Other Australian
Governments - - - - - - 2.0 0.5 - 2.5 0.6 3.1
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Barbados - - - - - - 0.6 - - 0.6 - 0.6
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Government of
Barbados - - - - - - 0.6 - - 0.6 - 0.6
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Brazil 0.7 - - 0.7 - - - - - 0.7 3.6 4.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Federal Tax Revenue
Ministry 0.7 - - 0.7 - - - - - 0.7 3.6 4.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Canada 2.9 - - 2.9 - - 9.2 0.4 - 12.5 3.8 16.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Canada Revenue
Agency 2.7 - - 2.7 - - - - - 2.7 0.4 3.1
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Finances Quebec 0.2 - - 0.2 - - - 0.1 - 0.3 0.1 0.4
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Government Of
Saskatchewan - - - - - - 9.1 - - 9.1 0.1 9.2
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Ministry Of Finance
-
Ontario - - - - - - - - - - 0.1 0.1
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Rural Municipality
Of
Leroy
(Saskatchewan) - - - - - - - 0.2 - 0.2 2.9 3.1
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Rural Municipality
Of
Prairie Rose
(Saskatchewan) - - - - - - - 0.1 - 0.1 - 0.1
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Other Canadian
Governments - - - - - - 0.1 - - 0.1 0.2 0.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Chile (3) 1,250.7 125.1 - 1,375.8 - - 15.8 - - 1,391.6 5.1 1,396.7
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Servicio De
Impuestos
Internos 1,250.7 125.1 - 1,375.8 - - 15.8 - - 1,391.6 5.1 1,396.7
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
China 0.5 - - 0.5 - - - - - 0.5 - 0.5
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
China Tax Bureau 0.5 - - 0.5 - - - - - 0.5 - 0.5
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Ecuador - - - - - - 0.3 - - 0.3 - 0.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Government of
Ecuador - - - - - - 0.3 - - 0.3 - 0.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
India - - - - - - - - - - - -
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Income Tax - - - - - - - - - - - -
Department
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Indonesia 2.3 - - 2.3 - - - - - 2.3 - 2.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Kantor Pelayanan
Pajak
Wajib 2.3 - - 2.3 - - - - - 2.3 - 2.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Japan 0.1 - - 0.1 - - - - - 0.1 - 0.1
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
National Tax Agency 0.1 - - 0.1 - - - - - 0.1 - 0.1
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Malaysia 2.2 - - 2.2 - - - - - 2.2 - 2.2
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Inland Revenue Board 2.2 - - 2.2 - - - - - 2.2 - 2.2
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Mexico 4.8 - - 4.8 - - 2.4 - - 7.2 4.3 11.5
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Mexican Federal Tax
Administration 4.8 - - 4.8 - - 2.4 - - 7.2 4.3 11.5
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Netherlands 1.6 - - 1.6 - - - - - 1.6 - 1.6
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Tax and Customs
Administration 1.6 - - 1.6 - - - - - 1.6 - 1.6
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Peru 35.7 - - 35.7 - - 0.6 - - 36.3 - 36.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Republica Del Peru - - - - - - 0.6 - - 0.6 - 0.6
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
National
Superintendency
of Customs And Tax
Administration 35.7 - - 35.7 - - - - - 35.7 - 35.7
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Philippines - - - - - - - - - - 0.4 0.4
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Bureau of Internal
Revenue - - - - - - - - - - 0.4 0.4
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Singapore 2.8 - - 2.8 - - - - - 2.8 - 2.8
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Inland Revenue
Authority
of Singapore 2.8 - - 2.8 - - - - - 2.8 - 2.8
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
South Korea 0.8 - - 0.8 - - - - - 0.8 - 0.8
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Government of South
Korea 0.8 - - 0.8 - - - - - 0.8 - 0.8
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Switzerland 1.7 - - 1.7 - - - - - 1.7 - 1.7
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Canton of Zug 1.7 - - 1.7 - - - - - 1.7 - 1.7
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Trinidad and Tobago
(4) 6.1 - - 6.1 - 69.7 21.5 - - 97.3 1.9 99.2
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Board of Inland
Revenue 6.1 - - 6.1 - 69.7 21.5 - - 97.3 1.9 99.2
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
United Kingdom 8.8 - - 8.8 - - - - - 8.8 3.4 12.2
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
City of Westminster - - - - - - - - - - 0.9 0.9
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Her Majesty's
Revenue
& Customs 8.8 - - 8.8 - - - - - 8.8 2.5 11.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
United States of
America (142.7) - - (142.7) 128.3 - 22.8 - - 8.4 3.9 12.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Arizona Department
Of
Revenue - - - - - - 0.2 - - 0.2 - 0.2
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Arizona State Land
Department - - - - - - - - - - 0.5 0.5
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Bureau Of Land - - - - - - - - - - - -
Management
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Internal Revenue
Service (0.1) - - (0.1) - - - - - (0.1) - (0.1)
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Louisiana Department - - - - - - - - - - - -
Of
Revenue
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Texas Comptroller 13.0 - - 13.0 - - - - - 13.0 3.0 16.0
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Treasury General
Account 14.5 - - 14.5 - - - - - 14.5 0.3 14.8
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
U.S. Nuclear
Regulatory
Commission - - - - - - 0.2 - - 0.2 - 0.2
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
U.S. Department Of
The
Interior - - - - 128.3 - 21.8 - - 150.1 - 150.1
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
U.S. Department Of
The
Treasury (5) (170.1) - - (170.1) - - - - - (170.1) - (170.1)
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Utah State Tax
Commission - - - - - - 0.1 - - 0.1 - 0.1
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Washington
Department
Of Revenue - - - - - - 0.3 - - 0.3 - 0.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Other Us Governments - - - - - - 0.2 - - 0.2 0.1 0.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Figures are rounded to the nearest decimal point.
(1) Production entitlements of 1.6 million barrels of oil
equivalent (boe) paid in-kind.
(2) Payments made for royalties in relation to the North West
Shelf of US$81.6 million relate to the ad valorem royalty over
which the Commonwealth has jurisdiction. Under the Offshore
Petroleum (Royalty) Act 2006, the royalties are assessed and
collected on behalf of the Commonwealth by the Government of
Western Australia Department of Mines, Industry, Regulation and
Safety. Payments are currently allocated between the Commonwealth
(approximately one third) and Western Australia (approximately two
thirds).
(3) Income and mining taxes are paid in Chile on a calendar year
basis. However, for the purpose of this Report, taxes paid are
included for BHP's financial year (1 July 2020 to 30 June 2021).
For reference, income tax and specific tax on mining activities
paid by Escondida and Pampa Norte for calendar year 2020 amount to
US$880.8 million (Escondida) and US$57.9 million (Pampa Norte).
(4) Production entitlements of 3.2 million boe paid in-kind.
(5) This amount represents a refund of taxes paid from the US
Department of Treasury due to US tax law changes arising from
Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
signed into law on 27 March 2020, which accelerated refunds of
alternative minimum tax credits.
Payments made on a project-by-project basis
Taxes paid by classification and project are presented in this
section and have been prepared on the basis set out in the 'Basis
of Report preparation' section of the Report.
US$ millions Corporate Royalty-related Taxes Total Royalties Production Fees Payments Signature, Total Other Total
income income levied taxes entitlements for discovery payments payments payments
taxes taxes on paid infrastructure and as defined to
production improvements production by the governments
bonuses UK
Regulations
Total
payments to
governments 7,206.0 392.5 27.8 7,626.3 2,850.0 156.0 98.0 5.7 - 10,736.0 325.9 11,061.9
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Petroleum 37.1 267.4 27.8 332.3 209.9 156.0 48.2 - - 746.4 15.8 762.2
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Algeria Joint
Interest
Unit (1) (1.1) - - (1.1) - 86.3 - - - 85.2 - 85.2
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Australia
Joint
Interest
Unit 2.0 - - 2.0 - - - - - 2.0 - 2.0
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Australia
Production
Unit
- Victoria (2.5) (0.1) - (2.6) - - - - - (2.6) - (2.6)
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Australia
Production
Unit
- Western
Australia (51.9) 97.6 - 45.7 - - 1.6 - - 47.3 5.1 52.4
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Bass Strait 48.5 169.9 - 218.4 - - - - - 218.4 1.2 219.6
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Gulf of
Mexico 4.9 - - 4.9 128.3 - 22.0 - - 155.2 3.3 158.5
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
North West
Shelf 180.6 - 27.8 208.4 81.6 - - - - 290.0 - 290.0
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Trinidad and
Tobago
Production
Unit (2) 0.5 - - 0.5 - 69.7 21.5 - - 91.7 1.9 93.6
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
UK Production
Unit 2.8 - - 2.8 - - - - - 2.8 - 2.8
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Other (3) (146.7) - - (146.7) - - 3.1 - - (143.6) 4.3 (139.3)
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Minerals
Americas 1,277.3 125.1 - 1,402.4 - - 26.0 0.3 - 1,428.7 12.2 1,440.9
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Escondida 1,181.7 125.1 - 1,306.8 - - 13.0 - - 1,319.8 2.5 1,322.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Other Copper 2.5 - - 2.5 - - 0.9 - - 3.4 0.7 4.1
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Pampa Norte 57.2 - - 57.2 - - 2.8 - - 60.0 2.0 62.0
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Potash Canada 0.1 - - 0.1 - - 9.3 0.3 - 9.7 3.4 13.1
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Head Office -
BHP Billiton
Brasil Ltda - - - - - - - - - - 3.6 3.6
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Head Office -
RAL Cayman
Inc 35.8 - - 35.8 - - - - - 35.8 - 35.8
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Minerals
Australia 6,435.7 - - 6,435.7 2,640.1 - 23.2 5.3 - 9,104.3 280.1 9,384.4
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
New South
Wales Energy
Coal - - - - 62.3 - 1.8 0.2 - 64.3 14.6 78.9
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Nickel West 28.8 - - 28.8 26.0 - 3.2 - - 58.0 21.6 79.6
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Olympic Dam (7.5) - - (7.5) 76.3 - 2.3 - - 71.1 23.1 94.2
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Other Coal 32.3 - - 32.3 - - - 0.3 - 32.6 16.9 49.5
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Queensland
Coal (4) 224.3 - - 224.3 300.3 - 2.0 4.8 - 531.4 85.7 617.1
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Western
Australia
Iron
Ore 6,157.8 - - 6,157.8 2,175.2 - 13.9 - - 8,346.9 118.2 8,465.1
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Group and
Unallocated (544.1) - - (544.1) - - 0.6 0.1 - (543.4) 17.8 (525.6)
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Closed Sites 3.8 - - 3.8 - - 0.6 0.1 - 4.5 0.8 5.3
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Corporate (5) (563.5) - - (563.5) - - - - - (563.5) 17.0 (546.5)
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Commercial 15.6 - - 15.6 - - - - - 15.6 - 15.6
--------- --------------- ---------- ------- --------- ------------ ---- -------------- ---------- ----------- -------- -----------
Figures are rounded to the nearest decimal point.
(1) Production entitlements of 1.6 million boe paid in-kind.
(2) Production entitlements of 3.2 million boe paid in-kind.
(3) Includes a refund of taxes paid from the US Department of
Treasury due to US tax law changes arising from Coronavirus Aid,
Relief, and Economic Security Act (CARES Act) signed into law on 27
March 2020, which accelerated refunds of alternative minimum tax
credits.
(4) Royalties, fees and other payments made by BM Alliance Coal
Operations Pty Limited have been included in total payments to the
extent of BHP's ownership of the operating entity, being 50 per
cent.
(5) The corporate income tax amount predominantly reflects the
allocation of the Australian corporate income tax liability among
members of the Australian tax consolidated group. For more
information, refer to Basis of Report preparation section.
.
Basis of report preparation
The Report is prepared from data recorded in our financial
systems, being the same data and financial systems used to prepare
our Financial Statements. In preparing the Report, we have followed
the draft guidance material produced by the Australian Accounting
Standards Board.
The 'Total payments as defined by the UK Regulations' included
in pages 20 to 25 have been prepared in accordance with the Reports
on Payments to Governments Regulations 2014, as amended by the
Reports on Payments to Governments (Amendment) Regulations 2015 and
the UK Regulations implement the EU Accounting Directive (Chapter
10, Directive 2013/34/EU) (the 'UK Regulations').
Taxes, royalties and other payments to governments are presented
in this Report on a cash paid and cash received basis for the year
ended 30 June 2021.
For our controlled assets, amounts included in our total
payments to governments are 100 per cent of the assets' payments to
governments. For our non-operated and operated joint ventures,
amounts included in our payments to governments are 100 per cent of
the amounts paid by BHP and, in the case of BHP Mitsubishi Alliance
(BMA), 50 per cent of payments made by the operating entity for BMA
in which BHP has a 50 per cent ownership. For our investments in
joint ventures and associates that are equity accounted by BHP, no
amounts have been included in our total payments to governments as
BHP is not the operator and does not make payments on behalf of the
asset. For information purposes, the BHP share of the payments made
by our significant equity accounted investments have been shown on
page 6 even though no amounts have been included in our total
payments to governments.
Taxes, royalties and other payments, both cash and in-kind
(non-cash), to governments, net of refunds, are collectively
referred to in this Report as 'total payments to governments' and
include the following payment categories:
Corporate income taxes
Payments to governments based on taxable profits under
legislated income tax rules. This also includes payments made to
revenue authorities in respect of disputed claims and withholding
taxes. For the purposes of allocating corporate income taxes to
particular countries in the Payments made by country and level of
government section of this Report, withholding taxes are allocated
to the country to which the withholding taxes are remitted - for
example, Chilean withholding taxes paid to the Chilean Government
are allocated to Chile.
Royalty-related income taxes
Payments to governments in relation to profits from the
extraction of natural resources, including Petroleum Resource Rent
Tax (PRRT) in Australia and Specific Tax on Mining Activities
(STMA) in Chile. This also includes payments to revenue authorities
in respect of disputed claims. Royalty-related income taxes are
presented as income tax in section 3.1.1 Consolidated Income
Statement in the Annual Report 2021.
Taxes levied on production
Payments to governments in relation to crude excise, carbon tax
and severance tax on the extraction of natural resources. Taxes
levied on production are presented as expenses, not income tax, in
section 3.1.1 Consolidated Income Statement in the Annual Report
2021.
Royalties
Payments to governments in relation to revenue or production
generated under licence agreements. This also includes payments to
revenue authorities in respect of disputed claims. Royalties are
presented as expenses, not income tax, in section 3.1.1
Consolidated Income Statement in the Annual Report 2021.
Royalty-related income taxes are excluded from Royalties.
Production entitlements
Payments to governments entitled to a share of production under
production sharing agreements. Production entitlements are most
often paid in-kind. In-kind payments are measured based on the
market value of the commodity on the date of delivery to the
government.
Fees
Payments to governments in the form of fees typically levied on
the initial or ongoing right to use a geographical area for
exploration, development and/or production. This includes licence
fees, rental fees, entry fees and other payments for licences
and/or concessions.
Payments for infrastructure improvements
Payments to governments for the construction of public
infrastructure, such as roads, bridges and port facilities.
Dividend payments
Payments to governments with ownership interests in specific
assets; not payments to governments as holders of ordinary shares
in BHP. There were no dividend payments to governments for the year
ended 30 June 2021.
Signature, discovery or production bonuses
Payments to governments upon signing an oil and gas lease, when
discovering natural resources, and/or when production has
commenced.
Other payments
Payments to governments under other legislated tax rules, such
as payroll tax, fringe benefits tax, excise duties, property tax
and land tax. These payments are not specifically required to be
disclosed by the UK Regulations.
Excluded amounts
The following are not included in total payments to
governments:
Taxes collected
Tax payments made to governments on behalf of our employees.
Indirect taxes
Tax payments made to or received from governments in the nature
of sales tax, value added tax and goods and services tax.
Penalties and interest
Payments to governments resulting from the imposition of
penalties, fees or interest.
Other
Certain payments, whether made as a single payment or as a
series of related payments below US$100,000 (being a lower amount
than the GBP86,000 threshold set out in the UK Regulations).
Projects
Payments made on a project-by-project basis (refer to Payments
made on a project-by-project basis section of this Report) present
payments by entity when not specifically attributable to a
project.
Payments in relation to our Corporate and Commercial function
have been included in the total payments to governments as defined
by the UK Regulations. The payments are not attributable to
specific projects and reflect functional support for the Group
that, in FY2021, consisted entirely of projects that undertook
relevant activities as defined by the UK Regulations.
The Payments made on a project-by-project basis section presents
corporate income tax amounts for each project/entity taking into
account the effects of tax consolidation in Australia. These
include:
-- losses from one entity can be offset against taxable income
of another entity within the same tax consolidated group
-- only the head entity of a tax consolidated group is liable to
make corporate income tax payments to the ATO
-- typically, corporate tax groups allocate the aggregate
corporate income tax payments made by the head entity to the ATO
among entities within the Australian tax consolidated group
Reporting currency
All payments to governments on pages 20 to 25 have been reported
in US dollars. Payments denominated in currencies other than US
dollars are translated for this Report at the exchange rate at the
date of the payment, unless stated otherwise.
Glossary
Adjusted effective tax rate
Total taxation expense excluding exceptional items and exchange
movements included in taxation expense divided by Profit before
taxation and exceptional items.
Adjusted effective tax and royalty rate
Total taxation expense excluding exceptional items and exchange
movements included in taxation expense plus royalty expense divided
by Profit before taxation, royalties and exceptional items.
BHP or the Group
BHP Group Limited and BHP Group Plc and their respective
subsidiaries.
Current tax expense
The amount of corporate income tax and royalty-related income
tax and production entitlements currently payable and attributable
to the year, measured at rates enacted or substantively enacted at
year-end, together with any adjustment to those taxes payable in
respect of previous years.
Deferred tax expense
The amount of corporate income tax and royalty-related income
tax and production entitlements attributable to the current year
but payable in future years provided using the balance sheet
liability method.
Employees and contractors
Employee data is the weighted average number of employees at the
last day of each calendar month for a 10-month period based on BHP
ownership.
Contractor data is collected from internal surveys and the
organisation systems and averages for a 10-month period.
Global Reporting Initiative Standards
The GRI Standards represent global best practice for reporting
publicly on a range of economic, environmental and social impacts.
Sustainability reporting based on the Standards provides
information about an organisation's positive or negative
contributions to sustainable development.
Government
Any national, regional or local authority of a country (includes
a department, agency or undertaking that is a subsidiary
undertaking where the authority is the parent undertaking).
Income tax expense
The total of current tax expense and deferred tax expense.
Low-tax jurisdictions
In classifying which countries are 'low-tax jurisdictions', we
have applied the EU list of non-cooperative jurisdictions for tax
purposes, issued in December 2017 by the European Union and
subsequently updated. The updated list used in this Report was
issued in February 2021.
Payments to shareholders, lenders and investors
Geographical distribution is based on the registered address of
shareholders (for returns to shareholders including dividends) and
country of incorporation of the borrower for interest payments.
Profit before taxation
Profit before taxation when presented by country is adjusted for
intercompany dividends.
Project
Consistent with the UK Regulations, a project is defined as the
operational activities that are governed by a single contract,
licence, lease, concession or similar legal agreements and form the
basis for payment liabilities with a government. If multiple such
agreements are 'substantially interconnected' they may be
considered a project. For these purposes 'substantially
interconnected' means forming a set of operationally and
geographically integrated contracts, licences, leases or
concessions or related agreements with substantially similar terms
that are signed with a government, giving rise to payment
liabilities.
Report
The Report has been prepared for BHP's financial year from 1
July 2020 to 30 June 2021.
Social investment
Includes community contributions and associated administrative
costs (including costs borne by BHP to facilitate the operation of
the BHP Foundation), and BHP's equity share in community
contributions for both operated and non-operated joint
ventures.
UK Regulations
The Reports on Payments to Governments Regulations 2014, as
amended.
BHP Group Plc Registration number 3196209
Registered in England and Wales
Registered Office: Nova South, 160 Victoria Street, London SW1E
5LB United Kingdom
A member of the BHP Group which is headquartered in
Australia
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END
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