Taxes are an important contribution to society. It is important for Inter IKEA Group to conduct our business in a responsible way and to be a good corporate citizen in line with our IKEA culture and values. This includes paying taxes in accordance with laws and regulations in all the jurisdictions where we operate.
Taxes are taken into consideration in business decisions. However, every business decision always starts with us looking at what is good for our customers, co-workers and business. We also consider the interests of business partners and other stakeholders, as well as the societies impacted by our operations.
More information on the taxes paid by Inter IKEA Group companies can be found in our annual Tax Report. In this report we give insight into how our effective tax rate is build up, we share a country-by-country report for corporate income tax and provide a break-down of our total tax contribution.
Inter IKEA Group’s approach to tax is based on the following tax principles:
Tax principle 1 - Compliance
We are committed to complying with all tax legislation and paying taxes in accordance with the rules and regulations in the jurisdictions where we operate.
Tax principle 2 - Business rationale
We believe in the principle that tax should follow business. There is always a business reason for operating in a certain jurisdiction. We pay tax in the jurisdictions where we operate based on the value created there and the economic reality of our business.
Tax principle 3 – Transfer pricing
We apply the arm’s length principle and follow international transfer pricing guidance when pricing transactions with group companies. We are consistent in our pricing across the jurisdictions where we operate and maintain documentation to support the transfer pricing policies applied.
Tax principle 4 - Relationship with tax authorities
We act with integrity towards tax authorities in all the jurisdictions we operate in. When tax law is complex or unclear we strive for open and constructive dialogue with tax authorities to achieve clarity. This will always be done on the basis of full disclosure of relevant facts and circumstances.
Tax principle 5 - Transparency
We are transparent about our approach to tax and our tax position. We do this by giving insight into how our effective tax rate is built up, disclosing our country-by-country report for corporate income tax and providing a break-down of our total tax contribution.
Tax principle 6 - Governance
We have a tax policy in place based on our tax principles that has been approved by the Finance Committee of our Management Board. The Finance Committee receives regular updates on material tax matters and we also report annually to our Audit Committee on our tax position. Inter IKEA Group has the mechanisms in place to safeguard adherence to our tax policy.