Tax is vital for the economic and social development. We have an unwavering commitment to comply with tax legislation in every country where we do business.

At Inditex we are fully committed to contributing to the economic and social development of the different countries in which we are present.

Our tax commitment is evidenced by our compliance with all tax obligations generated from our corporate activity. This is in compliance with applicable local and international regulations, through good tax practices, and in line with the sustainability and corporate social responsibility principles established by the Group.

We have made a total tax contribution of €6.09 billion in 2021

To reach this goal, we maintain relationships with the local tax authorities, based on principles of good faith, collaboration and mutual trust. We try to avoid tax disputes by applying preferential interpretation criteria on the tax regulations set by the authorities or courts of law.

Furthermore, we are part of part of Foro de Grandes Empresas (“Large Companies Forum”) in Spain, whose primary objective is to promote greater collaboration among large companies and the state tax administration. We comply with the Code of Good Tax Practices promoted in the Forum, and have followed its recommendations, proposals and subsequent developments.

Our transparency is shown in a triple tax report, in which we explain the taxes generated in each geographical area, throughout the value chain and for the different types of taxes.

Our contribution by the different types of taxes

During 2021, our activities in the markets in which we operate generated total taxes of 6,093 million Euros of which 2,423 million euros are direct taxes, among which we highlight corporate income tax, custom duties, property tax and social security payments supported by the Company; and 3,670 million euros as collected taxes, including income tax withholdings for employees and shareholders, social security payments supported by the employee and taxes on the production and consumptions of good and services.

For the purpose of homogenising this information, we use PwC's Total Tax Contribution method, which divide Group taxes into five major categories, including taxes on profits, properties, people taxes, on products and services and planet taxes.

  • Profit taxes: taxes incurred for the profits obtained by the company, such as corporate income tax, tax on economic activities and certain taxes collected as withholdings on payments to third parties.
  • Property taxes: taxes on ownership, sales, transfer or the occupancy of property.
  • People taxes: taxes associated with employment both incurred and collected, including income tax withholdings of employees or social security payments by both the employee and the company.
  • Product taxes and services: indirect Product taxes on the production and consumption of goods and services, including VAT, custom duties, etc.
  • Planet taxes: taxes on the supply, use or consumption of products and services considered to impact the environment.
Our contribution by geographical area in 2020

We have defined a Tax Policy, setting out responsible tax behaviours, with principles in line with those set out in the OECD guidelines for multinational companies (2011).

Furthermore, we expressly reject opaque company structures which have special purpose vehicles in tax heavens. Group Companies located in countries or territories considered as tax heavens by Spanish law related to sales made in the nine stores located in Macao SAR* and the one in Monaco.