- The company paid €3.843 billion in taxes in 2022, of which 43% correspond to input tax and the remaining 57% to taxes collected.
- 99% of the taxes paid by Endesa last year have become Spanish public funds.
Endesa's tax contribution was up by 28% last year when compared to the previous financial year, for a total of €3.843 billion, and a total contribution to the public funds of €10.5M. Of the total amount paid, 43% corresponds to input tax of Endesa and the remaining 57% to taxes collected by Endesa as a result of its activities. According to these figures, of every euro earned by Endesa last year, 54 cents were paid in taxes, according to the 2022 Total Tax Contribution Report published by the company. This confirms the high tax burden of companies operating in the electricity sector across Spain.
The increase in Endesa's tax contribution could be seen in the input tax item, up by 31%, explained by the growth in profits last year, and in taxes collected, up by 25%, largely due to higher VAT collections, associated with the increased electricity generation volumes.
Concentration in Spain
Moreover, the report confirms that Endesa pays most of its taxes in Spain, where it carries out most of its activities. The company paid €1.634 billion in taxes last year, of which €1.619 billion became public funds. Therefore, 99% of all taxes paid by Endesa during 2022 were paid to the Spanish Tax Administration Agency, a percentage that is above the weight of Operations in Spain in the company's turnover (90%).
Corporation tax represented 34% of the total and environmental taxes (national and autonomous community), with a big weight in the electricity sector, represented, 33%. Both items concentrate two out of every three euros of taxes paid, followed by product and service taxes, such as local fees for the use of land, overhead spaces and subsoil (19%), property tax, such as IBI (6%) or tax on work-related income (8%).
With regard to taxes collected, mainly VAT, Special taxes and Withholding tax, the total amount was €2.209 billion during 2022, of which €1.676 billion were paid to the Spanish Tax Administration Agency, whereby the company is responsible for ensuring that such taxes are processed and collected properly.
In total, Endesa paid €3.295 billion to the public funds in 2022, 85% of its total tax contribution of €3.843 billion, i.e., equivalent to 38% of the Industry and Energy budget in the General State Budget for 2023, making Endesa is one of the biggest taxpayers in Spain. The tax contribution in the remaining countries is distributed between Portugal (264 million), France (153 million), Germany (114 million) and the Netherlands (17 million).
In addition to the company's Total Tax Contribution, Endesa pays for other taxes to the Public Administrations in the different regions in which it operates, such as the contribution made to the Energy Efficiency National Fund and its contributions to help fund the Social Bonus, for a total of €199M last year. Therefore, Endesa made payments to public administrations for a total of €4.042 billion in 2022.
"Endesa is firmly committed to adopting a responsible conduct on tax-related matters and seeks to promote transparency in this area because we are convinced that it helps create sustainable value and fits in with our social responsibility and corporate governance policies", stated María Muñoz Viejo, Head of Tax Affairs at Endesa.
Since 2014, Endesa has published the breakdown of its tax payments, as part of its transparency and corporate social responsibility policy, in addition to being recognised for several years as the listed company of Ibex 35 that provides the most transparent and comprehensive tax information, according to the “Contribution and Transparency Report” of the Compromiso y Transparencia Foundation.
About Endesa
Endesa is the largest electricity company in Spain and the second largest in Portugal. The company is also the second largest gas operator in the Spanish market. Endesa operates an end-to-end generation, distribution and marketing business. Through Endesa X, it also offers value-added services aimed at the electrification of energy usage in homes, companies, industries and Public Administrations. A new business line has also been created, Endesa X Way, fully dedicated to electric mobility. Endesa is firmly committed to the United Nations SDGs and strongly supports the development of renewable energies through Enel Green Power España, the digitalisation of grids through e-distribución, and corporate social responsibility (CSR). The Endesa Foundation is also active in CSR-related matters. Our workforce numbers around 9,260 employees. Endesa is a division of Enel, the largest electricity group in Europe.