Prosus’ approach to tax
We consider paying taxes as an important economic contribution to the societies in which we operate. A fair tax system is at the center of a well-functioning society. Without broad acceptance of tax rules, trust in companies’ good tax behavior on one side, and efficient and effective tax authorities at the other, societies will struggle to function properly and companies risk losing their license to operate. This is particularly important for digital companies whose business models are often questioned by regulators, policymakers, consumers, and society at large.
Our tax policy
Prosus is a strongly committed member of the communities within which we operate. We are committed to being a good corporate citizen acting with explicit and demonstrable honesty and integrity in all our dealings.
These core values are also fundamental in managing our tax affairs. We aim to have positive relationships with all key internal and external stakeholders (including tax authorities) and to manage tax affairs efficiently and effectively and with honesty and integrity. Prosus’ approach to taxes, our tax policy and tax disclosures form part of the dialogue that we have with our stakeholders, both internal and external, and are publicly available.
For more detail of our tax policy goals, principles and governance, see our Group tax policy report which sets out the policy governing the management of taxes by Prosus and its subsidiaries.
Our policy position and stakeholder engagement
As good corporate citizen we aim to provide constructive and reliable input to tax policymakers and stakeholders, through submissions to public consultations or direct engagement, at national (in all markets where we operate) and international levels (UN, OECD etc.)
We strongly support the creation of a level playing field in which local, regional and global companies are subject to the same taxes in the countries in which they operate, irrespective whether they have a local presence or centralized business model. Such a level playing field is crucial to stimulate local innovation.
Since 2019 we have strongly and actively supported the international efforts led by the OECD/G20 Inclusive Framework on BEPS to develop a global solution to remove imbalances from, and to modernize, the international tax system by creating a more level playing field.
In our view, taxes should be fair, balanced and uniform. Taxation of profits and local tax systems should be part of a harmonized, international framework. Companies should pay taxes locally, where their users and consumers are. We realise that, in the absence of, or whilst waiting for, a global solution for the tax challenges of the digital economy, Digital Services Taxes (“DSTs”) may be introduced locally. In our opinion it is important that these local DSTs are profit based or, if revenue based, allow for a mechanism for companies with a local business model who are already subject to all local taxes on revenues and profits, to credit these DSTs against other taxes.
We have engaged actively - and will continue to engage - with international and local policymakers and stakeholders to contribute in a positive and constructive manner about the international developments and the plans to introduce DSTs in our priority markets.