Snam tax policy
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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 2021, the gross global Added Value produced by Snam was 2,930 million euros, an increase of 172 million euros or 6.2% compared with 2020 (2,758 million euros).

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

  • Employees 10.0% (10.1% in 2020) - With reference to employees, there was a stable incidence in the Added Value distributed through direct remuneration consisting of salaries, wages and TFR [employee severance indemnity] and indirect remuneration composed of social security contributions and staff-related service costs (canteen services, welfare). As the pandemic situation continued, initiatives to support the corporate population continued in 2021 by expanding the range of welfare and work-life balance services.
  • Government 4.7% (-9.8% compared to 2019) – The amount allocated to the public administration through direct and indirect taxes for the period decreased sharply due to the one-off effects of the realignment of civil and fiscal values pursuant to Decree Law no. 104 of 14 August 2020, carried out on certain group assets. Net of this effect, the value allocated to the public administration is 14.6%, in line with the previous year (14.5% in 2020).
  • Shareholders 29.4% (-9.8% compared to 2019) - The value distributed to shareholders through dividend payments is in line with 2020, with a growing unit dividend (+5% compared to 2020), confirming the commitment to provide shareholders with attractive and sustainable remuneration.
  • Lenders 5.0% (-1.5 percentage points compared to 2020) - The value distributed to lenders fell in 2021, following a reduction in financial expenditures attributable to the effects of the activities carried out to optimise the financial structures in 2016-2020 and the absence of bond buybacks in 2021.
  • A total of 50.7% of the gross global added value produced by Snam was reinvested within the Group - (an increase on 2020, 38.7%), of which around 54.5% was employed for the amortisation of group assets (71.3% in 2020).
  • Lastly, about €6 million was allocated to local communities (0.2% of the value generated, 0,7% in 2020), and is represented by donations and environmental offsets made in accordance with the law for a total of about 3 million euros (in line with 2020) and donations to support the Italian health system and the third sector in the fight against the Covid-19 emergency (3 million euros).

 

Distribution of added value (%)

 

 INCOME TAXES

 

Income taxes (€115 million) break down as follows:

(€ million) 2019 2020 2021
Current taxes:      
- IRES 339 334 411
- IRAP   62   62  63
  401 396 474
Deferred and prepaid taxes:      
- Deferred (14) (14) (343)
- Prepaid (12) (12) (16)
  (26) (26) (359)
       
  375 370 115

 

Income taxes amounted to €115 million, comprised of €474 milion in current taxes partially offset by net deferred tax assets totalling €359 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, biomethane and hydrogen.

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, Saudi Arabia, Austria, China, the United Arab Emirates, France, Greece, United Kingdom and U.S.A.

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).

 


 

In order to ensure maximum transparency of the tax management procedures, Snam provides its financial, economic and tax information for each jurisdiction in which it operates. This reporting provides an indication of the magnitude of the Group activities and their tax contributions in these jurisdictions.

Country Corporate income taxes paid on a cash basis (k€) Corporate income taxes accrued on profits/losses (k€)

Italy

In Italy, Snam is responsible for natural gas transportation, dispatching and storage as well as regasification of liquefied natural gas (LNG). Parallel to its core business, the company is also increasingly investing in new businesses related to the energy transition, from sustainable mobility to energy efficiency and the development of renewable gases such as biomethane and hydrogen.

425,360.98 396,226.57
Albania
Engineering services and Project Management
8.64 10.98
The Netherlands
Subholding activities
- -
United Kingdom
Engineering services and Project Management
1.00 -
Ireland
Captive insurance business
154.20 27.15
China
Development of the Snam Group's activities in the Chinese market
100.00 2.00
TOTAL 425,624.82 396,266.70

 

Note: The scope of information and the data reported in this section represent “country-by-country” reporting, pursuant to Art. 1, paragraphs 145 and 146, of Law No. 208 of 28/12/2015. Entities registered in Italy: Snam S.p.A., Snam Rete Gas S.p.A., GNL Italia SpA, Stogit S.p.A., Snam 4 Mobility S.p.A., Asset Company 2 S.r.l., Infrastrutture Trasporto Gas S.p.A., Cubogas s.r.l., Snam 4 Efficiency S.r.l. (formerly Asset Company 4 S.r.l.), Tep Energy Solution S.r.l., Enura S.p.A. (formerly Asset Company 5 S.r.l.), Asset Company 6 S.r.l., IES Biogas S.r.l., Enersi Sicilia, Renerwaste S.r.l., Renerwaste Lodi S.r.l., Ecoprogetto Milano S.r.l., Ecoprogetto Tortona S.r.l., Tea Servizi S.r.l.. Entities registered in Albania: Snam Rete Gas S.p. A. - Branch Albania. Entities registered in the Netherlands: Snam International B.V. Entities resident in the United Kingdom: Snam Rete Gas S.p.A. - Branch UK. Entities registered in Ireland: Gasrule Insurance D.A.C. Entities registered in China: Snam Gas & Energy Services (Beijing) Co. Ltd.

For more details: 2021 annual report

 

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
11 May 2022 - 12:18 CEST