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Snam tax policy

Snam tax policy

Snam’s fiscal policy is based on the respect of the principles of the Code of Ethics

Snam’s fiscal policy wholly comply with the ordinary course of Italian fiscal provisions, which do not allow any fiscal optimization strategy. Furthermore, Snam fiscal policy is based on the respect of the principles of the Code of Ethics, of the Administrative liability (Model 231) and of the Company Corporate System Framework.

The correct fulfillment of fiscal obligations is assured by Snam internal provisions (procedures and directives, which define roles and responsibilities, functions of analysis and planning, functions of operativeness and control, conditions of the information flow, with the related instructions of traceability).

The process is relevant in respect of the aims of Internal Control over the Financial Reporting System and, consequently, the internal fiscal provisions define and assign to the competent functions the related control activities.

The Snam Group, in order to further strengthen its Internal Control and Risk Management System, has adopted the Tax Control Framework (TCF) which allows a structured approach for the detection, assessment, management and control of tax risks.
The implementation of the TCF, for Snam S.p.A. and Snam Rete Gas S.p.A., was functional to the admission, on December 2, 2019, to the collaborative fulfillment regime provided for by Legislative Decree 128/2015 (so-called "cooperative compliance"). The stay in the regime allows a continuous and preventive dialogue with the Revenue Agency, and represents a sure indicator of the constant application of those principles of correctness, transparency and awareness of the fulfilment of the tax obligation declined in the Guideline "Tax Control Framework – Tax Strategy".
This guideline defines the corporate behavior policy in relation to the tax variable and is available in an extract.

Download the extract from the Guideline Tax Control Framework

In 2020, the gross global added value produced by Snam amounted to 2,758 million euros, an increase of 63 million euros, or 2.3%, compared to 2019 (2,695 million euros).

Referring to the main stakeholders, the Added Value was distributed as follows:

  • Employees 10.1% (+0.5 percentage points compared to 2019) as direct compensation consisting of wages, salaries and severance pay and indirect compensation consisting of social security contributions and staff-related service costs (canteen services, reimbursement of travel expenses); with reference to the costs for services to staff, in the face of a cost containment related to lockdown measures following the covid-19 health emergency, Snam has supported its employees through welfare initiatives, purchase of protective equipment and health monitoring (pulse oxymeters), interventions to sanitify the working environments..
  • Government 14.5% (+0.1 percentage points compared to 2019) – through the payment of direct and indirect taxes;
  • Shareholders 29.6% (+0.7 percentage points compared to 2019) - the growth of the unit dividend (+5% compared to 2019), confirming the commitment to guarantee shareholders an attractive and sustainable remuneration, has more than compensated for the reduction in the number of shares outstanding against the share buyback carried out by Snam under the Share buyback program.
  • Lenders 6.4% (-1.4 percentage points compared to 2019). Reduction is due to a decrease in charges financial following the actions to optimize the financial structure launched in the period 2016-2020, and, in particular, from liability management operations.
  • A total of 38.7% of the gross global added value produced by Snam was reinvested within the Group (in line compared to 2019: 39.2%), of which around 72.3% was intended for the amortisation of assets (71.2% in 2019).
  • Lastly, over €19 million was designated for local communities (0.7% of the generated value, 0.1% in 2019) the significant increase compared to the 2019 is a testimony of Snam's commitment, also through the Foundation, to support the Italian health system and the third sector in the fight against the Covid-19 emergency, through donations of goods and money worth about 16 million euros. In addition, sponsorships, donations and environmental compensation carried out under the law totalled around 3 million euros (in line with 2019).

 

Distribution of added value (%)

 

 INCOME TAXES

 

Income taxes (€370 million) break down as follows:

(€ million) 2018 2019 2020
Current taxes:      
- IRES 313 339 334
- IRAP   60   62  62
  373 401 396
Deferred and prepaid taxes:      
- Deferred (16) (14) (14)
- Prepaid (16) (12) (12)
  (32) (26) (26)
       
  341 375 370

 

Income taxes amounted to €370 million, comprised of €396 milion in current taxes partially offset by net deferred tax assets totalling €26 million.

The Snam Group is present on the national territory, through the fully controlled operating companies Snam Rete Gas S.p.A. and Infrastructure Transport Gas S.p.A. (ITG), GNL Italia S.p.A. and Stogit SpA, through which it oversees respectively the transportation, regasification and storage of natural gas. It is also present, through Newco and / or companies acquired since 2018, in the sustainable mobility, energy efficiency businesses and biomethane.
Snam is present internationally through its subsidiaries Gasrule Insurance DAC, based in Dublin, and Snam International BV, based in the Netherlands, responsible for the tax obligations established by the respective national tax laws.
 Through its international associates, it also operates in Albania, Austria, China, the United Arab Emirates, France, Greece and the United Kingdom.

Snam S.p.A. has also duties of strategic direction, direction and coordination of its subsidiaries.
Snam makes available to the public the annual, consolidated and separate financial statements of Snam S.p.A .: in the Balance Sheet there are the payables / receivables for tax and in the Income Statement the taxes and the tax rate for the period.

Below is a link to Snam’s web site from which you can extract the Group’s financial statements
 
http://www.snam.it/en/Investor_Relations/Reports/index.html

As regards corporation tax (IRES), Snam opted for the Italian tax consolidation regime, to which all Italian consolidated companies have formally adhered, with the exception of Mieci S.p.A., Evolve S.p.A. and T-lux S.r.l. (companies not having requirements needed to adhere for 2020 fiscal year), and corporate vehicles that are not currently operational, established to accommodate future business initiatives (Asset Company 9 , 10 and 11).

Read the Snam Code of Ethics

Read the Snam Code of Ethics

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Find out more in Snam annual report

Find out more in Snam Annual Report

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Find out more about Business ethics and governance

Find out more about Business ethics and governance

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updated
23 April 2021 - 21:29 CEST