Responsible tax policy

Tax transparency

Our goal for 2020 is to end our already limited involvement in tax havens and streamline our corporate structure

Through active management we seek to reduce our already limited presence in jurisdictions classified as tax havens or uncooperative with tax authorities. In recent years we have significantly reduced our involvement in these territories, turning what was more than 40 companies into a minimal presence, as is shown below.

In compliance with the Spanish list of tax havens, as of December 31st, 2017 no Repsol-controlled company is active or has a registered address and tax residency in said jurisdictions.

However, it should be noted:

The Group has two controlled entities that are registered in tax havens, but they are inactive and/or being liquidated.
The Group holds a minority share in three non-controlled companies that are based in tax havens.

For the purpose of defining the concept of a tax haven, the list that appears in Royal Decree 1080/1991 of July 5th serves as a reference. In addition, we make sure we stay up to date with any international initiatives that exist regarding this matter and their possible effect on how tax havens are defined, and consequently the possibility of adding other countries or territories to the list (the list of uncooperative EU jurisdictions in tax affairs, elaborated by the European Union’s Economic and Financial Affairs Council, ECOFIN)

Below is a table detailing the Repsol Group’s companies with tax residency in tax havens (Spain’s list) together with their most relevant figures at year-end 2017.

Repsol's presence in territories classified as tax havens on the Spanish list

Company	Jurisdiction	Share	Status	Total income (in €M)	Pre-tax results (in €M)	Nominal tax rate
Greenstone Assurance Ltd. ⁽¹⁾	Bermuda	100%	Inactiva	0.03	0.11	0%
Sucursal en Liberia de Repsol Exploración Liberia, B.V. ⁽²⁾	Liberia	100%	Inactiva	0.5	-0.38	25%
Oleoducto de Crudos Pesados (OCP), Ltd. ⁽³⁾	Cayman Islands	29,66%	Activa	3.52	3.22	0%
Oil Insurance Ltd. ⁽⁴⁾	Bermuda	5,81%	Activa	36.39	10.19	0%
Transasia Pipeline, Co ⁽⁵⁾	Mauritius	15%	Activa	0.04	-0.34	15%

_{Understanding the symbols: a plus sign indicates income/profit; a minus sign indicates expenses/loss.}

_{(1) In run-off: An insurance company that limits its activities exclusively to liquidating insurance risks taken on in the past, and takes on no new business.}

_{(2) A permanent establishment that used to carry out hydrocarbon exploration activities in Liberia. It has since ceased its activities and is currently inactive.}

_{(3) A company that includes an international association agreement (joint venture) that channels the investment in an Ecuadoran operating company that manages infrastructures for oil company activities (Oleoducto de Crudos Pesados). Figures understood in relation to the Repsol Group's percentage share.}

_{(4) Mutual insurance companies for the Oil & Gas sector, which covers the Group's risks from Bermuda, a typical jurisdiction for reinsurance activities associated with Upstream assets. Figures correspond to the financial year 2016, the last year available. Figures understood in relation to the Repsol Group's percentage share.}

_{(5) A joint venture that channels the investment in an Indonesian operating company that manages infrastructures for oil company activities. Figures correspond to the financial year 2016, the last year available. Figures understood in relation to the Repsol Group's percentage share.}

We have no companies registered in any tax haven that is classified by Spanish regulations as having no taxation, other than those mentioned above.

Below is a table detailing the Group’s companies located in territories classified as uncooperative with tax authorities according to the EU’s list.

Repsol’s presence in non-cooperative tax jurisdictions according to the EU's list

Company	Jurisdiction	Share	Status	Total income (in €M)	Pre-tax results (in €M)	Nominal tax rate	Tax on profits (in €M)
Branch in Trinidad & Tobago of BP Amoco Trinidad & Tobago ⁽¹⁾	Trinidad & Tobago	30%	Active	451.82	-63.10	57.25%	-16.22
Repsol Angostura, Ltd. ⁽²⁾	Trinidad & Tobago	100%	Active	2.68	-25.34	55%	3.82
Branch in Trinidad & Tobago of Repsol Exploración Tobago, S.A.⁽³⁾	Trinidad & Tobago	100%	Active	0.08	0.02	55%	0.03
Repsol Exploration Namibia Pty, Ltd. ⁽⁴⁾	Namibia	100%	Inactive	0.46	0.26	35%	0.09

_{Understanding the symbols: a plus sign indicates income/profit; a minus sign indicates expenses/loss.}

_{(1) Branch in Trinidad and Tobago of a US joint venture between Repsol and the BP Group that holds exploration and production licenses in the country. Figures considered according to Repsol's stake.}

_{(2) Company incorporated in Trinidad and Tobago whose business is the provision of corporate services to Group companies.}

_{(3) Branch in Trinidad and Tobago of a Spanish company that currently holds a stake in exploration assets in the country.}

_{(4) Inactive company incorporated in Namibia that previously held several exploration blocks (currently abandoned).}

Corporate streamlining

The acquisition of the Talisman Group entailed substantial work in this regard. It required the integration of an intrinsically complex structure that encompasses more than 200 entities in 25 different jurisdictions.

Throughout 2017, significant progress was made in streamlining the Group’s corporate structure, the main highlights of which were: 36 dissolutions (mainly redundant holding companies in asset ownership structures, and inactive companies) and four divestments.

This reduction contributes to achieving our objective of maintaining a streamlined and easily manageable corporate structure, while projecting a unified and uniform image and strengthening the company’s market position with a unique identity.

Reporting channel

Repsol's Ethics and Compliance Channel is a completely confidential means of asking questions and raising concerns about possible breaches of the company's Code of Ethics and Business Conduct

Tax contribution by country

See a breakdown of how much tax our company pays in each country.