We create local well-being

L&T is among the most significant employers in its operating locations. The salaries, wages and taxes we pay, as well as the goods and services we buy, have a substantial impact on municipal finances and other businesses in each economic area.

Distribution of financial added value

The most important direct flows of money from our operations consist of customers’ service fees, salaries, bonuses and social security costs, taxes, purchases of goods and services, compensation to financiers and shareholders, and investments. 


L&T’s tax footprint

Transparent tax footprint reporting is a key element of L&T’s responsibility. The tax footprint refers to the tax revenue and tax-like payments accrued by society from a company’s business operations. In addition to direct and indirect taxes, L&T’s tax footprint reporting includes withholding taxes on salaries, as well as social security contributions.

L&T complies with local legislation in the payment, collection, accounting and reporting of taxes. A key factor in L&T’s tax management is the high-quality and timely submission of tax forms and ensuring that other statutory requirements are met.

The tax footprint summary includes taxes and tax-like payments for which L&T is responsible for paying or collecting the tax or payment in question. However, taxes included in the purchase price of a product or service, and for which L&T has no statutory reporting obligation, are not included in the tax footprint summary data.

Relevant taxes and payments are classified by type in this report. Figures for Finland are reported separately and other countries collectively.​

 

 TAX FOOTPRINT

 
 
 
 
 
 
 
 
 
 
Finland
Other operating countries
Total
 
Taxes and tax-related costs, EUR million
2016
2015
2016
2015
2016
2015
 
Income taxes/corporate taxes
10.0
9.6
0.4
0.4
10.3
9.9
 
Withholding taxes on salaries and forest taxes, and tax-at-source
49.2
49.4
3.3
3.2
52.5
52.6
 
Social security contributions
4.4
4.3
4.7
4.5
9.1
8.8
 
Production taxes *
0.1
1.1
0.0
0.0
0.1
1.1
 
Value added tax (tax on consumption)
77.5
76.5
5.3
5.2
82.8
81.7
 
Property taxes
0.4
0.1
0.2
0.1
0.6
0.2
 
Insurance taxes
0.6
0.6
 -
 -
0.6
0.6
 
Total
142.2
141.6
13.9
13.3
156.0
155.0
 
*  Taxes linked to production include, among others, waste taxes remitted by the company itself