1Economic Contribution to Society Economic Contribution to Society
SUPERMARKET
ECONOMIC CONTRIBUTION TO SOCIETY 2014
Total tax contributionTotal employment & value added generated
APPENDICES
3 Foreword 4 Companyprofile6 Economicvaluegenerated Economicvaluegenerated Totalvalueaddedgenerated
7 Employmentgenerated Directemployment Totalemploymentgenerated Communityengagement9 Totaltaxes&governmentrevenues Totaltaxcontribution Totalgovernmentrevenuesgenerated
11Taxcharged Taxchargedinthefinancialstatements Corporationtaxcharge Effectivetaxratefortheyear Deferredtax12 Independentassurancereport13Taxcontributionprinciples
CONTENTS
2Economic Contribution to Society Contents
FOREWORD BY JØRN P. JENSEN
Jørn P. Jensen,DeputyCEO&CFO,CarlsbergGroup
TheCarlsbergGroupcontributestotheeconomiesofmorethan40countriesinwhichwehaveoperations,aswellastotheadditional100-plusmarketswherewearepresentthroughlicenceandexportagree-ments.Thefullextentofoureconomiccon-tributionislargerthansomemightassume.Whereverweoperate,wecontributesignifi-cantlytosocietybycreatingjobs,growthandarangeofgovernmentrevenues.
In2014,asaresultoftheproductionandsaleoftheCarlsbergGroup’sproductswegeneratedDKK108.8bnintotalgovern-mentrevenuesdirectlyandthroughrelatedindustries.WewillcontinuetodevelopourbusinessinawaythatbenefitstheCarlsberg Groupaswellastheenvironmentandsoci-ety,uponwhichwedependforfuturegrowth.
TheGroupemploysaround46,000employeesdirectly,andanadditional420,000jobsarecreatedwithinagricul-ture,hospitalityandretailasaconse-quenceoftheproductionandsaleoftheCarlsbergGroup’sproducts.Asarespon-siblebusiness,weareclearonourglobaltaxobligations,operatinginfullcompli-ancewithalllocalandinternationaltaxlawsaswellasOECDguidelines.
Jørn P. JensenDeputyCEO&CFO, CarlsbergGroup
TheCarlsbergGroupencouragesgovern-mentstoadoptaconsistent,fairandsustainableexcisedutysystem,reflect-ingthebrewers’sizeablecontributionstosociety,andrecognisingthatbeerisalowerstrengthalcoholbeverage.Thebenefitsofsuchpoliciesarewidelyrecognisedbynationsaswellasinter-nationalorganisationsaroundtheworld.
ThisisthefirstreportofitskindfortheCarlsbergGroup.OurwidereconomiccontributionhasbeencalculatedwithEYusingawell-recognizedmethodologyandKPMGhasissuedassuranceonselectedinformationinthisreport.Itisbasedonexistingaccountingregulationsandourownreporting,whichisconstantlyunderreview,reflectingbestpracticeandregu-latorydevelopments.
Wehopethattheinformationwillbehelp-fultostakeholderswithaninterestintheCarlsbergGroupandtothosewhowishtogainanenhancedunderstandingofthewidereconomiccontributionoftheCarlsbergGroup.
Wewelcomefeedbackonthisreporttohelpusachieveourvisionofgrowingresponsibly.
The full extent of our economic contribution is larger than some might assume. Wherever we operate, we contribute significantly to society by creating jobs, growth and a range of government revenues.
Jørn P. JensenDeputyCEO&CFO,CarlsbergGroup
3Economic Contribution to Society Foreword by Jørn P. Jensen
COMPANY PROFILE
The Carlsberg Group, headquartered in Copenhagen, Denmark, is the fourth largest global brewer with a presence in more than 140 markets.
Weemployaround46,000peopledirectlyand,takingintoaccountjobsgeneratedindirectlyinrelatedindustriessuchasagricultureandhospitality,theCarlsbergGroupgeneratesjobsformorethan466.000intotal.
Wehavearound140brandsinourglobalportfolioand500includingsub-brands–astrongcombinationoflocalpowerbrandsandinternationalpremiumbrands.Carlsbergisourflagshipbrandandoneofthebest-knownbeerbrandsintheworld,whileourportfolioalsoincludesinterna-tionalpremiumbrandssuchasTuborg,Kronenbourg1664andGrimbergen,alongwithleadinglocalpowerbrandssuchasBaltika,FeldschlösschenandBeerlao.
OurbusinessiscentredinWesternEurope,EasternEuropeandAsia,andweareastrongmarketleaderinNorthernandEasternEurope.Therestoftheworldismainlyservicedthroughexportorlicenceagreements.
Ourstrategyembracesthethreeafore-mentionedregionsandrevolvesaround:ourstrongportfolioofbrandscateringtoconsumersacrossourmarkets;ourem-phasisonbeingacustomer-focusedbusi-ness;ourunrelentingfocusonefficiencyandeffectiveness;ourcommitmenttobeingasociallyresponsibleorganisation;and,lastbutnotleast,ourabilitytoretainandrecruithighlyskilledemployees.
We have around 140 brands in our global portfolio and 500 including sub-brands – a strong combination of local power brands and international premium brands
4Economic Contribution to Society Company profile
SUPERMARKET
NUMBER OF EMPLOYEES
TOTAL EMPLOYMENT GENERATED
46,067
466,000
TOTAL TAX CONTRIBUTION (DKK)
42.0bnTOTAL GOVERNMENT REVENUES GENERATED (DKK)
108.8bn
TOTAL VALUE ADDED GENERATED (DKK)
81.1bn
* CarlsbergGroup’sEconomicContributiontoSocietyiscalculatedincooperationwithEYusingawell-recognisedmethodology.Moreinformationonmethodologycanbefoundatwww.carlsberggroup.com
TAXES BORNE (DKK)
31.2bn
5Economic Contribution to Society Company profile
ECONOMIC VALUE GENERATED
Economic value generatedIn2014,directlygeneratedeconomicvalueinthecountriesinwhichweoperatetotalledDKK93.6bn.Theeconomicvaluegeneratedincludesgrossrevenue,otherincome,finan-cialincomeandincomeincludedinspecialitems.Ourcontributionisdistributedamongourstakeholders–asoperatingcoststooursuppliers,aswagesetc.toouremployees,asfinancialexpensestoourprovidersofcapitalandastaxestogovernments.Theeconomicvalueretainedistheprofitused tofinancedividendsforourshareholders
andthefuturegrowthofourbusiness.Thecontributionsinthefivemainareasaresummarisedinthefigure.
TheCarlsbergGroup’staxesbornein2014wereDKK31.2bn,oronethirdoftheeco-nomicvaluegenerated.Thevastmajor-ityofourtaxesborneareindirecttaxesincurredthroughexciseduties(approx.86%),whereastheremaining14%isincurredthroughdirecttaxessuchasen-vironmentaltax,corporateincometaxandsocialsecuritycontributionsforemployees.
49.5%
9.8%
2.1%
33.3%
5.3%
93.6bnECONOMIC VALUE GENERATED (DKK)
81.1bnTOTAL VALUE ADDED GENERATED (DKK)
Carlsberg Suppliers (includingagriculture)
Retail Hospitality
Value added generatedCalculatedwithEY,usingawell-recognisedmethodology,thevalueaddedbythepro-ductionandconsumptionoftheCarlsbergGroup’sproductstotalledmorethanDKK81.1bnfortheeconomiesofthecountriesinwhichweoperate. Ingeneralterms,valueaddedisthedif-ferencebetweenthemarketvalueofthefinalproductandthepurchasingvalueofthegoodsandservicesacquiredforitsproduction.Ourproductionandsales
facilities,aswellassuppliers,hospitalityandretailoutlets,addvaluetothefinalproductthatissoldtoconsumersallovertheworld.Valueaddedpayscompanies’taxliabilitiesandemployees’wages,andrewardslendersandentrepreneursfortheirinvestments.Forthegovernmentsinthecountriesinwhichweoperate,valueaddedisthesourceoftheirVATrevenues.
Operating costs DKK46.4bn
Employee wages DKK9.1bn
Providers of capital DKK2.0bn
Taxes borne incl. excise duties DKK31.2bn
Economic value retained DKK4.9bn
19%
11%
35%
35%
6Economic Contribution to Society Economic value generated
Direct employmentIn2014,theCarlsbergGroupdirectlyem-ployedmorethan46,000people.Com-paredto2013,whenweemployedapprox.40,000employees,thenumberfor2014issignificantlyhigherduetotheacquisitionofChongqingBreweryCo.LtdinChina.
Themajorityofouremployeesworkatourproductionsites,whichareoftenlocatedinlesspopulatedlocalprovinces.Weemployahighlyskilledworkforceinareassuchassales&marketing,finance,production,procurementandlogistics.
Total employment generatedInadditiontothe46,000employeesdi-rectlyemployedbytheCarlsbergGroup,theGroupalsogeneratesemploymentinrelatedindustriesinconnectionwiththeproductionandsaleofbeer.Theindirectcontributiontoemploymentisgeneratedthroughsuppliersinareassuchasagri-culture,packagingandlogisticsaswellasinducedemploymentinthehospitalityandretailsectors.ItisestimatedbyEYthatthetotalindirectandinducedemploymentcreatedbytheCarlsbergGroupin2014amountedtoapproximately420,000em-ployees.IncludingtheemployeesdirectlyemployedbytheCarlsbergGroup,morethan466,000peopleareemployeddueto
theproductionandsaleoftheCarlsbergGroup’sproducts.Foreverypersonem-ployedbytheCarlsbergGroup,anaddition-al9jobsarecreatedinrelatedindustries.
Community engagementJ.C.Jacobsen,thefounderofCarlsberg,builthiscompanyonthepassionateanddedicatedbeliefthattheprosperityofCarlsbergwasconditionalonengag-ingwithandgivingbacktosociety.Thatheritageguidesourvaluesandactionstodayandthelegacyiskeptalivethroughhundredsoflocalcommunityengagementactivitiesacrossthemarketsinwhichweoperatemajority-ownedcompanies.
TheemployeesoftheCarlsbergGroupallovertheworldmakegreateffortstointegrateourCSRpoliciesandinitiativesintotheirlocalcommunities.In2014,ourmajority-ownedcompaniesinvestedDKK35mwithintheirlocalcommunities,includingin-kinddonationssuchasfreeproductstosupportcharityevents,directfinancialcontributionsandcause-relatedmarketingactivities.AcrosstheGroup,9,232employeesvolunteeredin987variouslocalcommunityactivities(TheCarlsbergGroupCSRReport2014,underCommunityEngagement).
EMPLOYMENT GENERATED
7Economic Contribution to Society Employment generated
* CarlsbergGroup’sEconomicContributiontoSocietyiscalculatedincooperationwithEYusingawell-recognisedmethodology.Moreinformationonmethodologycanbefoundatwww.carlsberggroup.com
8Economic Contribution to Society Employment generated
ADDITIONAL JOBS CREATED
1 Carlsberg Group employee creates an additional 9 jobs in related industries
NUMBER OF EMPLOYEES
46,097peopledirectlyemployed
TOTAL EMPLOYMENT GENERATED
466,000peopleemployedintotalduetotheCarlsbergGroup
Retail70,000
15%
33%42%
10%
Suppliers incl. agriculture
154,000
CarlsbergGroup46,000
Hospitality196,000
TOTAL TAXES & GOVERNMENT REVENUES
The production and sale of the Carlsberg Group’s products generate substantial revenue for governments worldwide.
* CarlsbergGroup’sEconomicContributiontoSocietyiscalculatedincooperationwithEYusingawell-recognisedmethodology.Moreinformationonmethodologycanbefoundatwww.carlsberggroup.com
Total tax contribution by Carlsberg 39%
Total tax contribution by suppliers, retail and hospitality 61%
9Economic Contribution to Society Total taxes & government revenues
108.8bn*
42.0bn
Totalgovernmentrevenues(DKK)generatedbyCarlsberg,suppliers,retailandhospitality.
TotaltaxcontributionbyCarlsberg(DKK)
45
40
35
30
25
20
15
10
5
0
TOTAL TAX CONTRIBUTION (DKK)
1.7bn
Personal Incometaxes
8.3bn*
VATetc.
ExcisedutiesOtherTaxes Corporate incometaxEmployeetaxesVAT
Totaltaxcontribution byCarlsberg Totaltaxcontributionbysuppliers,retailandhospitality
180
160
140
120
100
80
60
40
20
0
Totalgovernmentrevenuesgenerated
TOTAL GOVERNMENT REVENUES GENERATED (DKK)
Total tax contribution In2014,theCarlsbergGroup’stotaltaxcontribution,comprisingbothtaxesborneandtaxescollected,amountedtoDKK42bn.
Thevastmajorityofourtaxesborneareindirecttaxesincurredthroughexciseduties,whichtotalledDKK27.6bn.Theremainingtaxesborne,totallingDKK
4.4bn,aredirecttaxessuchascorporateincometax(DKK2.2bn),socialsecuritytaxes(DKK1.3bn)andothertaxeslikeenvironmentaltaxetc.(DKK0.9bn).
Inadditiontothetaxesborne,wealsocol-lectedtaxesonbehalfofgovernments,forexampleemployeetaxes(DKK1.7bn),VAT(DKK8.1bn)andothertaxes(DKK0.2bn).
Total government revenues generatedTheproductionandsaleoftheCarlsbergGroup’sproductsgeneratesubstantialre-venuesforgovernmentsworldwide.TheserevenuesconsistofVATrevenues,exciseduties,corporatetaxes,income-relatedtaxes,socialcontributionsandothertaxespaidbyworkersandtheiremployers
withintheCarlsbergGroupandinrelatedindustriessuchasagriculture,retailandhospitality.ItisestimatedbyEYthatin2014,theCarlsbergGroupgeneratedDKK108.8bnintotalgovernmentrevenuesdirectlyandthroughrelatedindustries.
32.0bn1
Indirecttaxes86%
39%
61%
Directtaxes14%
Taxesborneincl. exciseduties
2.2bn*
27.6bn*
42.0bn
3bn
0.9bn
8.3bn*
Totaltaxcontribution
* WithinKPMG’s assurancescope.
1 ThedifferenceofDKK0.8bntotaxesbornein“EconomicValueGenerated”canbeexplainedbyperiodicdifferencesintaxesexpensedandtaxedpaid.
108.8bn
10Economic Contribution to Society Total taxes & government revenues
APPENDICESTax charged in the financial statement 2014
Tax charged in the financial statementsIn2014,theCarlsbergGroupreportedanexcisetaxchargeofDKK27.1bn(incomestatement,page64oftheconsolidatedfinancialstatements)andacorporatetaxchargeofDKK1.8bn(section6oftheconsolidatedfinancialstatements),givingatotaltaxchargeofDKK28.9bnaspartofthetaxesbornestatedonpage5.
Corporation tax charge (financial statements disclosures)ThetaxfortheyearfortheCarlsbergGroupfor2014wasDKK1,748mofwhichDKK2.250mwascurrenttaxchargeexpenseandDKK556mwasadeferredtaxcredit.Thetotalcorporateincometaxpaidin2014wasDKK2,168m
Thetaxpaiddiffersfromthecorporationtaxchargeintheincomestatementmainlybecauseofthetimingoftaxinstalmentpayments.
Effective tax rate for the yearThetablesshowthereconciledcorporateincometaxchangetothenominalweightedtaxratefortheCarlsbergGroupof23.8%for2014.ThenominalweightedtaxratefortheGroupiscalculatedasdomestictaxratesap-plicabletoprofitsintheentitiesasapropor-tionofeachentity’sshareoftheGroup’sprof-itbeforetax.TheeffectivecorporateincometaxratefortheGroupis26.1%for2014.
Deferred tax (financial statements disclosures)Deferredtaxrepresentsthetimingdiffer-encesthatcanoccurwhenitemsofincomeorexpenseareincludedinthefinancialstatementsindifferentperiodstothoseinwhichtheyaretaxableortax-deductible.Deferredtaxassetsandliabilitiesrepresentthetaxeffectsofsuchtimingdifferencesthatwilloccurinfutureperiods.Deferredtaxassetsandliabilitiesaremeasuredattaxratesthataresubstantivelyenactedatthereportingdate.
TheGrouphadanetdeferredtaxliabilityofDKK5,675min2014.Afteroffsettingbalanceswithinthesamejurisdictionthataresettledonanetbasis,theamountspre-sentedinthebalancesheetareliabilitiesofDKK7,105mandassetsofDKK1,430m.
Ofthetotaldeferredtaxassetsrecognised,DKK711mrelatedtotaxlosscarry-for-wards,theutilisationofwhichdependsonfuturepositivetaxableincomeexceedingtherealiseddeferredtaxliabilities.Itismanagement’sopinionthatthetaxlosscarry-forwardscanbeutilised.
DKKmillion 2014
Tax for the year can be specified as followsCurrenttax 2,250Changeindeferredtaxduringtheyear -556Changeindeferredtaxfromchangeintaxrate 2Adjustmentstotaxforpreviousyears 52
Total 1,748
DKKmillion 2014
Reconciliation of the effective tax rate for the year
% DKK m
Profitbeforetax 6,686
Nominalweightedtaxrate fortheCarlsbergGroup 23.8% 1,590
Changeintaxrate 0.0% 2
Adjustmentstotaxfor previousyears 0.7% 52Non-capitalisedtaxassets, netmovements -1.7% -116
Non-taxableincome -0.4% -27Non-deductibleexpenses 3.4% 230Taxincentivesetc. -0.6% -43Specialitems 0.2% 14Withholdingtaxes 2.1% 141Otherandtaxinassociates -1.4% -95
Effective tax rate for the year 26.1% 1,748
DKKmillion 2014
Deferred tax assets and deferred tax liabilitiesDeferredtaxat1January,net 8,085Adjustmentstopreviousyears 48Recognisedinothercomprehensiveincome 132Recognisedintheincomestatement -556Changeintaxrate 2Foreignexchangeadjustments -2,036
Deferred tax at 31 December, net 5,675
Specified as follows
Deferredtaxliabilities 7,105
Deferredtaxassets -1,430
Deferred tax at 31 December, net 5,675
11Economic Contribution to Society Appendices – Tax charged in the financial statement 2014
APPENDICESIndependent assurance report
To the readers of this reportWewereengagedbyCarlsbergA/Stopro-videassuranceonselectedinformationintheCarlsbergGroupEconomicContributiontoSociety2014.CarlsbergA/Sisrespon-sibleforthepreparationofthereportinaccordancewiththereportingcriteriaasspecifiedinappendixtaxcontributionprin-ciplesincludingtheidentificationofmate-rialissues.Ourresponsibilityistoissueanassurancereportbasedontheengagementoutlinedbelow.
Scope and limitationsOurengagementwasdesignedtoobtainlimitedassuranceonwhetherthefollowinginformationispresented,inallmaterialrespects,inaccordancewiththereportingcriteria:• Inthe“Economicvaluegenerated”sec-tion,thefollowinginformationfor2014:Taxesborneincl.exciseduties,corporatetaxpaidandexcisedutypaid(page6).
• Inthe“Taxchargedinthefinancialstatement2014”section,thefollowinginformationfor2014corporatetaxes:Totalforcorporateincometaxcharge,effectivetaxrateandspecificationofdeferredtax(page11).
WedonotprovideanyassuranceontheachievabilityofCarlsberg’sobjectives, targetsandexpectations.
Proceduresperformedtoobtainalimitedlevelofassuranceareaimedatdeterminingtheplausibilityofinformationandarelessextensivethanthosetoobtainareasonablelevelofassurance.
Reporting criteria and assurance standardReportingcriteriaarespecifiedinappen-dixTaxcontributionprinciples.FortheinformationcoveredbyourengagementscopeCarlsbergappliescriteriaasde-tailedinannex1.Itisimportanttoviewtheassuredinformationinthecontextofthesecriteria.Webelievethatthesecri-teriaaresuitableinviewofthepurposeofourassuranceengagement.
Weconductedourengagementinaccord-ancewiththeInternationalStandardforAssuranceEngagements(ISAE)3000:AssuranceEngagementsotherthanAuditsorReviewsofHistoricalFinancialInforma-tion,issuedbytheInternationalAuditingandAssuranceStandardsBoard.ThisStandardrequires,amongotherthings,
thattheassuranceteampossessthespecificknowledge,skillsandprofessionalcompetencesneededtoprovideassuranceonsustainabilityinformation,andthattheycomplywiththerequirementsoftheCodeofEthicsforProfessionalAccount-antsoftheInternationalFederationof Accountantstoensuretheirindependence.
Work undertakenOurproceduresincludedthefollowing:• Reviewingthesuitabilityofthereportingcriteria.
• Evaluatingthedesignandimplementa-tionofthesystemsandprocessesforthecollection,processingandcontroloftheselectedinformation.
• InquiriestotherelevantemployeesatCarlsbergA/Sresponsibilitiesandcar-ryingoutinternalcontrolproceduresoftheselectedinformation.
• Evaluatinginternalandexternaldocu-mentation,basedonsampling,todeterminewhethertheselectedtaxinformationissupportedbysufficientdocumentationandevidence.
• Ananalyticalreviewoftheselectedtaxinformationfortheindividualconsolidatedentities.
• ReconciliationofselectedtaxinformationwiththeauditedconsolidatedfinancialstatementsofCarlsbergA/S.
• Obtainedrepresentationlettersignedbymanagementandtheresponsibleemployees.
• WealsoreadotherinformationincludedinthereportonEconomicContributiontoSociety2014thatcontainstheselectedinformationandourreportthereoninordertoidentifymaterialinconsistencies,ifany,withtheselectedinformation.
ConclusionBasedontheproceduresperformed,asdescribedabove,nothingcametoouratten-tiontoindicatethattheselectedinformationisnotpresented,inallmaterialrespects,inaccordancewiththereportingcriteria.
Copenhagen,2March2015KPMG StatsautoriseretRevisionspartnerselskab
MikeMaloneyCertifiedPublic Accountant
HenrikO.LarsenStateAuthorised PublicAccountant
12Economic Contribution to Society Appendices – Independent assurance report
APPENDICES Tax contribution principles
Basis of Preparation
General commentsThisBasisofPreparationpresentsthescopeandmethodologyofthecollectionandre-portingofthedataontaxpaymentsusedintheCarlsbergGroupEconomicContributiontoSocietyReport(“theReport”).
TheReportaimstoprovidereaderswithanoverviewofthetotaltaxcontributiontosocietythattheCarlsbergGroup(exclud-ingassociates)hasgeneratedduringtheyear.ThetotaltaxcontributionisdefinedastaxesborneandtaxescollectedbytheCarlsbergGroup.
TheBasisofPreparationsupportsthedatafortaxesborne,taxescollectedandtotaltaxcontributionincludedintheReport.
ItistheresponsibilityoftheManagementofCarlsbergtoensurethatappropriatepro-ceduresareinplacetopreparereportinginlinewiththisBasisofPreparation.
Alldata,unlessotherwisestated,ispre-paredfortheyearfrom1January2014 to31December2014.
DataiscollectedforallcompaniesthatCarlsbergA/Scontrols.ControlisobtainedwhenCarlsbergA/Sdirectlyorindirectlyownsorcontrolsmorethan50%ofthevot-ingrightsinthesubsidiaryorhascontrolinsomeotherway.SubsidiariesthatCarlsbergcontrolshavereported100%oftheirtaxesborneandcollected,andthefullamountisincludedintheCarlsbergtaxcontribution.
CompaniesoverwhichtheGroupexercisesasignificantinfluence,butdoesnotcontrol,areconsideredtobeassociates.Significantinfluenceisgenerallyobtainedbydirectorindirectownershiporcontrolofmorethan20%butlessthan50%ofthevotingrights.DataforassociatesisnotpartoftheCarls-bergtaxcontribution.
Entitiesthat,byagreement,aremanagedjointlywithoneormoreotherparties(jointventures)areconsolidatedproportionately,anddataisrecognisedinproportiontotheownershipinterest.
EntitiesacquiredorformedduringtheyeararerecognisedintheReportfromthedateofacquisitionorformation.Entitiesthataredisposedoforwounduparerecognisedin
theconsolidatedincomestatementuntilthedateofdisposalorwinding-up.
Thedataincludesadegreeofestimation,astaxperentityisnotreportedindetailifatypeoftaxisbelowDKK100,000peryear.Instead,taxesbelowDKK50,000arenotreported,andtaxesaboveDKK50,000butbelowDKK100,000arereportedasDKK50,000.
Thedataisreportedbytheentityinlocalcurrencyinmultiplesof1,000.
Scope of reporting and definition of key terms“Tax”inthisReportmeansanyamountofmoneyrequiredtobepaidto,orcollectedandsubsequentlyremittedto,agovern-ment.Taxeshavebeenreportedbydiffer-entiatingbetweentaxesborneandtaxescollected.ThefollowingsectionsprovidethescopeofthedatapresentedintheReport.
TermsdefinedinCarlsberg’sAnnualReport2014arenotdescribedbelow.
TaxesborneandtaxescollectedarethetaxesdueinrespectofanaccountingperiodasdefinedintheIFRS,asadoptedbytheEU.Bornetaxespaidandcollectedtaxespaid,includingexcisedutypaid,areincludedwhencashisreleasedfromorreceivedbyCarlsberg.
Key term definitionsEconomic value generatedEconomicvaluegeneratedcomprisesgrossrevenue,otherincome,financialincomeandincomeincludedinspecialitems.Incomerecognisedinothercomprehensiveincome isnotincluded.
Total tax contributionTotaltaxcontributionisthesumofborneandcollectedtaxespaidtogovernmentsfortheperiodfrom1Januaryto31December.AmountsareincludedaspaidwhencashisreleasedfromorreceivedbyCarlsberg.
Operating costIncludescostofsales,salesanddistributionexpenses,administrativeexpenses,otheroperatingexpenses,expensesincludedinspecialitemsandshareofprofitaftertaxinassociates,butexcludingemployeewages.
Employee wagesIncludewagestoemployeesexcludingsocialsecuritycosts.
Providers of capitalIncludefinancialexpensesrecognisedintheincomestatement,butnotfinancialexpensesrecognisedinothercomprehensiveincome.
Economic value retainedConsolidatedprofitaftertax.
Current taxThecorporateincometaxdueinrespectoftaxableprofitforanaccountingperiod,asdefinedintheInternationalFinancialReport-ingStandardIAS12.
Deferred taxThecorporateincometaxdueinrespectoftemporarydifferencesbetweenaccount-ingvaluesandtaxbase,asdefinedintheInternationalFinancialReportingStandardIAS12.
13Economic Contribution to Society Appendices – Tax contribution principles
Employee taxesIncludepersonalincometaxesandsocialcontributionforemployees(borneand collected).
GovernmentThetermgovernmentmeansanygov-ernmentbodyornation,state,regionordistrict.
Direct taxAtaxpaiddirectlytoagovernmentbythepersononwhomitisimposed.Suchtaxesalsoincludenon-refundableVAT,non-recov-erablewithholdingtaxes,realestatetaxetc.
Indirect taxAtaxrequiredtobepaidtoagovernment byonepersonattheexpenseofanother.
Scope of reporting
1. Borne taxes and excise dutiesThesearethetaxesthatCarlsbergisobligedtopaytoagovernmentonitsownbehalf,ortaxesthatCarlsbergisobligedtopaytoathirdpartyandthatcannotberecoveredfromagovernment.
Corporate income taxCorporateincometaxcomprisesanytaxonthebusinesscalculatedonthebasisofitsprofits,incomeorcapitalgains.Typically,thesetaxeswouldbereflectedincorporateincometaxreturnsmadetogovernmentsandtendtobecomepayable,andarepaid,eitherintheyeartheprofitsweremadeoruptooneyearlater,dependingonthelocaltaxrulesastotimingofpayments.
Excise duties (beer and soft drinks etc.)Excisedutiesareindirecttaxesontheconsumptionortheuseofcertainproducts(e.g.alcoholicbeveragesortobacco).Incontrasttovalueaddedtax(VAT),theyareexpressedasamonetaryamountperquantityoftheproduct.
Energy taxes (net, non-refundable) Energytaxescompriseenvironmentaltaxesleviedontheconsumptionofenergybornebycompanies’ownsupplyofenergy.Suchtaxesmayincludetaxesonthecon-sumptionofelectricity,oil,gasorcoal.
Environmental feesEnvironmentalfeescompriseadditionalenvironmentaltaxesthatmayapplydependingoncompanyoperations.Suchtaxesmayincludeothertaxesanddutiesonthesupplyofgoodsandservicesthatarepotentiallyharmfultotheenviron-mentandhavenotbeenincludedintheenergytaxes.
VAT (non-deductible)Thiscomprisesthenon-deductiblepartofthevalueaddedtax,i.e.taxesthatariseinrelationtobrewingorsale,whichcan-notberecoveredfromagovernment.Thepaymentisbornebythecompanyandnottheconsumers.
Real estate taxesRealestatetaxescompriseanyproperty-relatedtaxes,includingproperty,landandestatetax(otherthanstampduty,whichisshownbelow).Typically,thesetaxestendtobecomepayable,andarepaid,togovern-mentsthroughouttheyear.
Withholding taxes on dividends, royalties, interest and professional fees Withholdingtaxescomprisethefinaltaxburdenonpaymentofdividends,interestetc.afterpossibletaxrelief.
Transportation taxesTransportationtaxescompriseflighttax,petroltax,registrationdutiesandothertaxesleviedonthemobilityofgoodsandemployees.
Social contribution for employeesSocialcontributionforemployeescompris-esthesocialsecuritycontributionsleviedonandbornebytheemployingcompany.Suchcontributionsmayincludetheem-ployer’snationalinsurancecontributions,employmentinsurancetax,employees’providentfund,old-age,survivors’anddisabilityinsurancetax.
Stamp dutiesStampdutiescomprisetaxesthatariseontransfersofassetsorcapital.Typically,thesetaxeswouldbereflectedinstampdutyreturnsmadetogovernmentsandtendtobecomepayable,andarepaid,togovernmentsshortlyaftercapitaloras-setshavebeentransferred.
Other taxesThiscategorycomprisesallpaidtaxeswhichhavenotbeenincludedintheabovecategories.
2. Taxes collectedThesearetaxesnotfinallybornebyCarls-berg,butCarlsbergbearsanadministrativeburdenforthecollectionoftaxes.Thesetax-esare,however,indirectlygeneratedfromCarlsberg’sbusinessactivitiesandthereforepartofCarlsberg’stotaltaxcontribution.
Personal income taxesThiscomprisesemployeetaxeswithheldfromemployeewagesandpaidtogovern-ments,i.e.taxcollectedandremittedtogovernmentsonbehalfofemployees.
Social contribution withheld by the companyThiscomprisessocialcontributionspayablebyemployeestosocialsecurity,privatefundedandunfundedschemes.Generally,theemploymentofstaffrequirestheem-ployingcompanytoadministeremployees’socialsecuritycontributionsbydeductingthesefromwagesandsalaries.
Withholding tax on dividend distributions made by Carlsberg A/SThiscomprisestaxesthatarerequiredtobewithheldinadvanceonpayments madetoshareholders.
VATValueaddedtax,orVAT,isabroadlybasedconsumptiontaxassessedonthevalueaddedtogoodsandservices.Itappliesmoreorlesstoallgoodsandservicesthatareboughtandsoldforuseorconsumptionincertaingeographicareas.ThiscomprisesthenetVATpayabletoagovernment,i.e.VATonsalesminusVATonpurchases.
14Economic Contribution to Society Appendices – Tax contribution principles
Carlsberg A/S100 Ny Carlsberg Vej1799 Copenhagen VDenmark
Phone +45 3327 3300Fax +45 3327 4701www.carlsberggroup.com
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