In the words of Carlos Torres Vila, Chair of BBVA, "as companies we contribute toward long-term economic and social development." Thanks to its business activity "BBVA reported the highest tax contribution in its history in 2023, for a total of €13,618 million worldwide, with which we contribute to the welfare of the societies in which we are present," up 24 percent on the previous year.

A large portion of this figure, €7,668 million, relates to taxes that BBVA pays on its own behalf, which is the main reason for the growth in the Group's total tax contribution over the previous year, which has increased by 53 percent. The increase in this line has been particularly notable in Mexico, where the payment of own taxes has more than doubled compared to 2022, though also in Spain, where it has grown by 44 percent. These figures clearly illustrate how the profitability of financial institutions translates into growth and economic welfare.

Among own taxes, corporate income tax is the main one, with payments in 2023 totaling €5,196 million around the world, more than two thirds of the total. Dividing this payment by the BBVA Group's profit before tax in 2023 -which was €12,419 million- gives a tax rate of 41.84 percent.

Carlos Torres Vila, Chair of BBVA: "As companies we contribute toward long-term economic and social development."

This is followed by Value Added Tax (VAT), which accounted for 11.36 percent of the total, employee-related taxes (Social Security contributions), with 10.67 percent, and lastly other taxes, which accounted for the remaining 10.21 percent. Other taxes include those levied specifically on financial institutions and have risen sharply in recent years (+47 percent with respect to 2022), largely due to the introduction of the bank levy in Spain.

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BBVA - Banco Bilbao Vizcaya Argentaria SA published this content on 01 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 April 2024 09:43:00 UTC.