Tax Contribution Report


On the other hand, it is important to highlight that all of the information related to the configuration of Endesa´s Tax Expense is contained in detail in its Consolidated Financial Statements and in the Standalone Financial Statements and those of each subsidiary, specifically in Note 15 denominated Tax Situation.  Therein exists a detailed composition of the tax expense and a conciliation between the accounting result and tax base, between the amount of tax to be paid and the tax expense and between the accounting result and the tax expense.

Additionally, in the Endesa´s Consolidated Financial Statements and in the Standalone Financial Statements and those of each subsidiary, specifically in Note 11, a detailed breakdown is given regarding the principle relevant tax litigations.

Presence in low tax territories

The policy of Endesa is not to carry out investments in or through territories classified ad tax havens with the aim of reducing its tax burden. Furthermore, Endesa has never made use of entities domiciled in tax havens for the purpose of hiding the true owner of incomes, activities, goods or rights.

It is true that Endesa carries out some non-relevant activities in another country, which, without being considered as a tax haven by the Spanish Tax Authority, certain externals observers consider it as a territory that benefits from a tax regime more favourable that the Spanish one, as could be the case with The Netherlands.

What is certain is that, neither the activities carried out by the company in this geographic area, nor the legal qualification given by the Spanish Tax Administration to this country, justify the inclusion in this type of list of privileged tax jurisdictions.  However, being conscious of the importance that the company appreciates that it always acts with complete transparency, Endesa considers that it is convenient to inform about the activities carried on by its subsidiary in The Netherlands.

Endesa holds 100 percent of International Endesa, B.V., a Dutch company, incorporated in 1993, which raises funds for the Endesa Group through debt issuance programmes.  The activity of the company has reduced substantially in recent years and foreseeably will continue to do so until its eventual dissolution.

In any event, it is important to mention that The Netherlands have signed an Agreement for the Prevention of Double Taxation with Spain with an interchange of information clause and maintains a rate of Corporate Income Tax very similar to the current Spanish rate.

It should be taken into account that the Dutch economic and legal characteristics have permitted to date direct access to the financial markets in a more efficient manner, adopting legal systems that are more agile, capable of providing a greater flexibility to companies established therein and resulting in lower compliance costs and a greater speed of access to sources of finance.