Iberdrola has received the Fair Tax Mark, an accreditation that recognizes companies for responsible tax payments globally.
The Fair Tax Foundation, a non-profit organization, promotes tax fairness and transparency in corporate tax practices. It aims to encourage and acknowledge businesses that pay the correct amount of corporate tax at the right time and in the right place. Currently, about 250 companies hold this Fair Tax Mark accreditation, with Iberdrola being the first Spanish company to achieve this honor.
Jaime Boswell, Director of Accreditation at the Fair Tax Foundation, stated, “It’s fantastic that Iberdrola is flying the flag for fair taxation as the first Fair Tax Mark accredited company in Spain. It’s leading the way for others to follow. Its tax transparency report is comprehensive, detailing the group’s taxes across various jurisdictions, including public country-by-country reporting and significant cash tax contributions. This level of detail is precisely what we look for when awarding the Fair Tax Mark.”
Community Contributions
Iberdrola has established itself as a leading contributor to taxation in the countries where it operates. In 2023, the company made a historic tax contribution of nearly 9.3 billion euros, a 24% increase from 2022, according to the group’s fiscal transparency report. This figure amounts to over one million euros per hour.
Spain remains Iberdrola’s largest area of contribution, with nearly 3.5 billion euros, reflecting a 35% increase. The positive societal impact of the electricity company, chaired by Ignacio Galán, is evident not only in its commitment to sustainability and economic growth but also in its fiscal contributions. Over the past five years, the company’s total contributions to public coffers in more than 25 countries have surpassed 40 billion euros.
In 2023, Iberdrola’s tax contributions related to income statement taxes amounted to 44% of its profit before taxes and social security. The rise in contributions in Spain was primarily due to electricity taxes, including a 1.2% sales levy and taxes on water used for power generation. Additionally, corporate income tax significantly increased, and other taxes nearly doubled. In Spain, taxes and charges impacting the income statement, excluding corporate income tax, accounted for 123% of net operating expenses, contrasting sharply with the global average of 22%.
Iberdrola’s total contributions by country are led by Spain (3.5 billion euros), followed by Brazil (2.5 billion euros), the United States (1.3 billion euros), the United Kingdom (1.1 billion euros), and Mexico (310 million euros). The remaining countries collectively contributed 579 million euros.
