Prosus’s 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 centre of a well-functioning society. Without broad acceptance of tax rules, trust in companies’ good tax behaviour 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’s 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 a 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 centralised 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 modernise, the international tax system by creating a more level playing field.
Naspers and Prosus OECD Comment letter Unified Approach (pillar 1) 12 November 2019
Naspers and Prosus OECD Comment letter GloBE (pillar 2) 2 December 2019
Prosus views on OECD Reports on Pillar One and Pillar Two Blueprints 11 December 2020
Prosus comments on European Commission digital levy public consultation 12 April 2021
Prosus - Naspers OECD Pillar One Prosus comment letter 19 August 2022
In our view, taxes should be fair, balanced and uniform. Taxation of profits and local tax systems should be part of a harmonised, 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.
Prosus is a supporter of the new Tax Governance Code, an initiative of the Confederation of Netherlands Industry and Employers (VNO-NCW). This code was drawn up in consultation with businesses and many other stakeholders. The Tax Governance Code sets ambitious transparency guidelines. Prosus supports enhanced tax transparency.
A few years ago we embarked upon a journey to provide stakeholders with more detailed information on our approach to taxes. We amongst others started to disclose details about the quantum of taxes paid in locations where our businesses operate. The VBDO assessment and benchmark of our tax transparency efforts for financial year 2022 can be viewed here. Our tax transparency journey continues. We aim to further enhance this in financial year 2023, like we did in prior years, by providing stakeholders with even more information on our approach to tax and the way in which we manage our tax affairs.
VNO-NCW tax governance code
Highlights of the tax governance code
Not only do we support but we have also recently contributed to the “Best Practices for Good Tax Governance” published by the Tax Executives Council Conference Board, The B Team and the EBTF (Case study 5 – Prosus: Tax authority relationships: “Trust and taxes – cooperative compliance in a harmonised international tax system”).
Best practices for good tax governance
Highlights of the best practives for good tax governance
We started collaborating with Capabuild in 2017. As a public-private partnership providing tax training for tax authorities, policymakers and other government officials in the global south, Capabuild strives to improve the understanding of global taxation.
We, at Prosus, support this objective. A better understanding of global taxation can help governments improve the effectiveness and efficiency of the tax system in their jurisdiction. This can also contribute to an alignment with a modernised and harmonised global tax system with a level playing field where all businesses, whether they are local, regional or global, are subject to the same tax rules.
As taxation is a significant factor in every nation’s, every citizen’s, life, it is important that it is understood. It needs to be demystified.
Through our contribution to the training platforms offered by Capabuild, we are able to emphasise the need for dialogue, the building of trust and true transparency around taxes paid, collected and applied to improve the lives of citizens, the people the governments serve. We proudly support initiatives such as those of Capabuild. These contribute to having sustainable, fair and transparent tax systems that enable governments to provide for their citizens and protect human rights.
Capabuild overview 2021-24