Tax transparency

Enel is an industrial group whose main activity involves electricity generation, distribution and sales. The choice of countries where the Group operates is guided by business choices and not by tax reasons.

Since 2017, the Enel Group has adopted a tax strategy, as a set of principles and guidelines inspired by values of transparency and legality 

Enel SpA ensures that the tax strategy is acknowledged and applied within the company through the governance bodies. Its interpretation is left to the parent company, through the Tax unit, which also manages its periodic updates.

The Group entities must respect the principle of legality, applying the tax laws of the countries where the Group operates, to ensure that the wording, spirit and purpose of the applicable tax rule or system is respected. Moreover, the Enel Group does not undertake behaviours or domestic or cross-border operations that result in purely artificial constructions, that do not reflect the economic reality and from which it is reasonable to expect undue tax advantages, where they conflict with the purpose or spirit of tax provisions or system in question and give rise to double deduction, deduction/non-inclusion or double non-taxation, including as a result of any divergence between the tax systems of different jurisdictions.

The Enel Group has adopted a structured model of tax govenance, control and risk management and ensures transparency and fairness in its relations with tax authorities, in the event of audits on both the Group companies and third parties.

As of 2018 (2018-2017), Enel has adopted a Total Tax Contribution model for Italy and the main countries where it operates, providing evidence of the taxes paid and withheld.

The comparative analysis of the 2019 and 2018 data revealed an increase in 2019 of the Total Tax Borne for a total of 144.5 million euros (+3.1%), and an increase of the Total Tax Collected totalling 236 million euros (+1.7%). The TTC index rose from 38.4% in 2018 to 64.7% in 2019.

The table shows information relating to the overall tax contribution for 2019 in the main countries where the Enel Group operates (TTC 2019).