Total Tax Contribution

With its participation in a survey carried out by PwC regarding the Total Tax Contribution, Deutsche Telekom supports an initiative of the European Business Tax Forum (EBTF) for the development and establishment of a comprehensive approach regarding the determination and publication of information relating to enterprises with respect to tax. In this context, so far Deutsche Telekom has taken the main European group companies in the telecommunications sector into account. The figures were compiled for the first time by Deutsche Telekom in cooperation with PwC for the reporting year 2018. The corresponding figures have also been compiled for subsequent reporting years. The figures for 2021 are presented below. Deutsche Telekom intends to determine and publish such information also relating to subsequent years and to potentially extend this to further group companies.

Put simply, the Total Tax Contribution addresses the contributions as a whole to the financing of the public domain that are made in connection with, or are a result of, enterprises and entrepreneurial activities. In this respect not only are the taxes levied on the profit of the enterprise or group of companies taken into account, further types of taxes are also addressed, which can be quite substantial, in particular also in the telecommunications sector. Moreover, the so-called “Taxes Borne” as well as so-called “Taxes Collected” are included in the approach in order to comprehensively visualize the financial weight of the enterprise and its activity for the public domain. For example, it also illustrates the aspects of employment and value-added through the presentation of wage taxes, social contributions and value-added taxes. As a consequence, a differentiated and therefore meaningful picture results regarding the positive financial impact on the public community in connection with the enterprise and its activity. In addition, this approach can also show national differences in the tax frameworks.

Further information regarding the EBTF as well as the PwC survey can be found at https://ebtforum.org and https://www.pwc.com/gx/en/services/tax/publications/total-tax-contribution-framework.html. Under both links, explanations and details regarding the definition of the Total Tax Contribution are also given, for example with respect to the concepts of Taxes Collected and Taxes Borne and further breakdowns of the Total Tax Contribution, as well as a presentation of the findings of the survey carried out by PwC.

The following charts show the Total Tax Contribution 2021 of the group companies addressed.