Rio Tinto, one the world’s largest metals and mining corporations has just disclosed that it paid USD4 billion paid in taxes and royalties.
The company said in the disclosure that its operations created USD35 billion direct economic contribution delivered to host communities in 2016.
Commenting on the disclosure, Rio Tinto chief financial officer Chris Lynch said “Rio Tinto is a major contributor to society and we are proud of the economic activity and wealth we generate through taxes, royalties, employee wages, payments to suppliers and investment in communities. From both a global and local perspective, our Taxes paid report helps inform our stakeholders about the role we play and the impact we have in the community. While many people know we produce materials that are essential to products they use every day – from telecommunications to transport – this report also helps the public better understand our total contribution to society.”
The $4 billion paid to governments in taxes and royalties last year takes our total direct tax contributions past $50 billion since we first started publishing the report in 2010.
The company gave a breakdown of the payment as follows: the majority of Rio Tinto’s taxes were paid in Australia ($2.9b), Canada ($249m), Mongolia ($215m), Chile ($205m), the United States ($102m) and South Africa ($100m).
Corporate income tax remained the largest component of Rio Tinto’s tax payments around the world in 2016, followed by government royalties, employer payroll taxes and other taxes.