Fiscal transparency is a fundamental pillar in Telef\u00f3nica\u2019s corporate responsibility strategy. The company understands that clear and responsible tax management not only strengthens its reputation, but also contributes significantly to the economic and social development of the communities in which it operates. In this context, Telef\u00f3nica has published its 2025 Fiscal Transparency Report, reaffirming its commitment to openness and regulatory compliance in tax matters.\u00a0<\/p>\n
The approach: Fiscal Transparency at Telef\u00f3nica\u00a0 <\/p>\n
Telef\u00f3nica\u2019s tax policy is based on its Responsible Business Principles, always acting with integrity, legality and tax transparency. The company adheres to the OECD guidelines for multinational companies, ensuring rigorous compliance with its tax obligations in all the territories where it operates.\u00a0\u00a0<\/p>\n
Taxation is understood as a key contribution to economic and social development, in line with the UN Sustainable Development Goals (SDGs). In addition, Telef\u00f3nica publicly reports its total tax contribution, and does so in accordance with the GRI 207 international standard, which reinforces its commitment to sustainability and transparency.\u00a0<\/p>\n
Fiscal Governance Structure at Telef\u00f3nica\u00a0 <\/p>\n
Fiscal governance at Telef\u00f3nica is designed to ensure effective and transparent tax management. The Board of Directors is the body responsible for determining and approving the Group\u2019s tax policy and strategy, reflecting the importance that the company attaches to this area. The Group\u2019s Tax Department, together with the Regional Divisions, develops and supervises the implementation of the tax strategy, periodically reporting to the Audit and Control Committee on tax policies, associated risks and operations of tax relevance. This structure allows for effective oversight and seamless communication between the various levels of the organization, ensuring regulatory compliance and tax risk mitigation.\u00a0<\/p>\n
Fiscal Policies and their Implementation <\/p>\n
Telef\u00f3nica\u2019s Fiscal Control Policy, approved by its Board of Directors, establishes the fundamental principles that guide its tax actions. Its objectives include:<\/p>\n
The correct compliance, in a timely manner, of tax obligations.\u00a0The effectiveness and efficiency of operations from a tax perspective.\u00a0The taking of positions or the fiscal strategy duly supported and documented.\u00a0The reliability of tax information.\u00a0Transparency before third parties, especially before the Tax Administration.\u00a0Managing tax risks Telef\u00f3nica\u2019s Taxation and OECD Standards <\/p>\n
Telef\u00f3nica\u2019s taxation goes beyond regulatory compliance: it is a strategic lever of corporate responsibility aligned with the principles of the OECD, the international body that sets tax guidelines for multinational companies and whose significance is linked to the promotion of fair, transparent taxation without abusive planning.<\/p>\n
The results of the 2025 Fiscal Transparency Report demonstrate with concrete figures the extent to which Telef\u00f3nica\u2019s tax transparency meets \u2014 and exceeds \u2014 those standards: \u20ac7,472 million in total tax contribution, a ratio of \u20ac21.3 for every \u20ac100 of turnover, and a country-by-country breakdown of tax presence across all jurisdictions where the Group operates.<\/p>\n
Three milestones particularly reinforce Telef\u00f3nica\u2019s leadership in tax transparency this year.<\/p>\n
First, the ongoing adherence since 2010 to the\u00a0Code of Good\u00a0Tax Practices, a voluntary framework promoted by the Spanish Tax Agency that fosters a cooperative and transparent relationship between large companies and the tax administration.Second, the voluntary publication of the\u00a0report\u00a0Country-by-Country\u00a0(CbCR)\u00a0several years ahead of its legal requirement,\u00a0demonstrating\u00a0the company\u2019s commitment to accountability.Third, the highest\u00a0S&P Global CSA\u00a0score in tax transparency, achieved once again, which positions Telef\u00f3nica as a sector benchmark in responsible taxation at a global scale. Impacts, Risks and Opportunities in Tax Matters\u00a0\u00a0 <\/p>\n
Telef\u00f3nica\u2019s fiscal management is not without its challenges. The company continuously identifies and evaluates the impacts, risks and opportunities associated with its tax activity. This includes analysing legislative changes, managing tax disputes, and identifying opportunities to optimize its tax contribution responsibly. This management is articulated through a Risk Management Model based on the COSO (Committee of Sponsoring Organizations of the Treadway Commission) framework, which allows a structured and effective methodology to be applied to anticipate and mitigate possible risks.\u00a0<\/p>\n
By proactively addressing these aspects, Telef\u00f3nica seeks to minimize risks and take advantage of opportunities that contribute to its sustainability and that of the communities where it operates. On the other hand, as a result of the entry into force of DAC 6 (Directive on Administrative Cooperation), the Company has developed a procedure to detect and report the mechanisms subject to notification.\u00a0<\/p>\n
Action Plan and Fiscal Commitments\u00a0 <\/p>\n
Telef\u00f3nica has outlined an action plan focused on the continuous improvement of its tax policies, the training of its team and the promotion of a culture of integrity. As part of its commitment to tax transparency, it maintains an open dialogue with tax authorities, both nationally and internationally, and has adhered to the Code of Good Tax Practices since 2010. In addition, it actively participates in national and international forums, contributing to legislative initiatives and fostering relationships of trust with key stakeholders, such as NGOs, business associations and public bodies.\u00a0<\/p>\n
Progress achieved in 2025 <\/p>\n
During\u00a02025, Telef\u00f3nica has made\u00a0significant progress\u00a0in its commitment to tax transparency. The company\u2019s total tax contribution amounted to\u202f\u20ac7,472 million,, of which \u20ac2,360 million\u00a0corresponds to taxes borne directly and\u00a0\u20ac5,112 million\u00a0to taxes collected on behalf of tax administrations. These data reflect the positive impact and commitment of the company to the local economies in which it\u00a0operates.\u200b\u202f<\/p>\n
For every 100 euros of turnover, we spend 21.3 euros in taxes (6.7 on taxes borne and 14.6 on taxes collected)<\/p>\n
Telef\u00f3nica\u2019s tax contribution is not limited to Corporate Income Tax, but also covers fees, local taxes, social security payments and taxes collected on behalf of third parties, such as withholdings and indirect taxes. This broad view is reflected in its Country by Country Report, which details its tax presence in each jurisdiction. In 2025, for example, the company contributed \u20ac3,043 million in Spain and \u20ac2,207 million in Brazil.<\/p>\n
Telef\u00f3nica\u2019s commitment to Fiscal Transparency\u00a0 <\/p>\n
The publication of the 2025 Fiscal Transparency Report underlines Telef\u00f3nica\u2019s firm commitment to ethical, transparent and responsible tax management. Telef\u00f3nica has been one of the 45 companies that have voluntarily submitted the Transparency Report for the 2024 financial year to the Tax Authorities in Spain, a practice it has\u00a0maintained\u00a0on a\u00a0voluntary basis since the 2016\u00a0financial year.\u202f<\/p>\n
External Recognition in Fiscal Transparency <\/p>\n
Telef\u00f3nica\u2019s commitment to fiscal transparency continues to be recognised by the leading international indices and organisations. In 2025,\u00a0S&P Global CSA\u00a0has once again awarded Telef\u00f3nica the\u00a0highest score in tax transparency,\u00a0consolidating\u00a0its position as a benchmark in the sector.\u00a0\u00a0<\/p>\n
We have received the fiscal responsibility transparency seal in the \u201ct de\u00a0transparente\u00a0\u2605\u2605\u2605 \u201d category from Fundaci\u00f3n Haz, with a 96\u202f% compliance rate, the highest distinction<\/p>\n
The company understands that its tax contribution is essential for\u00a0the sustainable development of the societies\u00a0in which it\u00a0operates\u00a0and, therefore, continues to strengthen its policies and practices in this area.\u200b\u00a0<\/p>\n
\u00a0For further details on Telef\u00f3nica\u2019s initiatives and results\u00a0in the area of\u00a0tax transparency, we invite you to download the full report available at the following link:\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Fiscal transparency is a fundamental pillar in Telef\u00f3nica\u2019s corporate responsibility strategy. The company understands that clear and responsible…\n","protected":false},"author":2,"featured_media":18473,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[124],"tags":[1427,155,6707],"class_list":["post-18472","post","type-post","status-publish","format-standard","has-post-thumbnail","category-telefonica","tag-governance","tag-telefonica","tag-transparency"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts\/18472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/comments?post=18472"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts\/18472\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/media\/18473"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/media?parent=18472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/categories?post=18472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/tags?post=18472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}