POLICY
Global tax
Global Tax Policy
Paying taxes is part of our role in society. Through tax contributions to the countries and communities we do business in, we directly and indirectly support local communities. Our Global Tax Policy outlines and describes the governing principles for tax management at DSV.
DSV has operational entities in more than 90 countries, all of which are governed by distinctive national and international tax legislation. This document outlines DSV Group’s Global Tax Policy and outlines our governing principles for tax management.
Our primary objective is to be tax compliant and live up to our social responsibility, while ensuring a positive return on investment for our shareholders.
We support local communities all over the world Through our global tax payments, DSV contributes to a variety of state, county and council projects, which support local communities all over the world.
When it comes to tax, we have made a choice to act in what we consider to be a fair and responsible way: We want to comply with tax legislation, and we do not engage in aggressive tax planning to avoid tax payment. We believe in contributing to the societies and local communities in which we operate.
We help to achieve a better and more sustainable future DSV's tax policy directly contributes to achieving the UN’s Sustainable Development Goals (SDGs) #8 and #16. In addition, DSV's tax payments indirectly contribute to achieving most of the 17 SDGs.
The distribution of funds from DSV's tax payments is entirely managed by local governing bodies, which means that our contribution to SDG targets in respect of taxes is indirect and mostly relevant whenever investment (funded by taxes) is required.
Policy
The tax policy of the DSV Group is to comply with tax legislation and meet legal requirements, including timely filing of tax returns and payments.
DSV pays taxes (direct and indirect) in the countries in which we operate and where profits are generated. This means paying the taxes that we are required to, and not engaging in aggressive tax planning to avoid payments. It also means that we are committed to being transparent with respective tax authorities.
At the same time, DSV has an obligation to ensure a return for our shareholders by managing taxes, including mitigation of double taxation and use of tax incentives and planning opportunities relevant for our business if normal practice in the countries we operate.
DSV complies with the letter and the spirit of the law. In this respect DSV applies the guidelines provided by the Organisation for Economic Co-operation and Development (OECD), stating that “
an enterprise complies with the spirit of the tax laws and regulations if it takes reasonable steps to determine the intention of the legislature and interprets those tax rules consistent with that intention in light of the statutory language and relevant, contemporaneous legislative history.”
Our taxes follow the business DSV’s structure and set-up is driven by our commercial considerations and business strategy. We are a global logistics company and do not wish to limit our business by avoiding low or no tax jurisdictions, some of which may be regarded as tax havens or secrecy jurisdictions. It is our policy to only incorporate companies in such jurisdictions when they serve our operations, and we do not exploit these countries for tax planning purposes
We do not engage in aggressive tax planning We pay our taxes where we operate and do not implement artificial structures in tax havens to avoid taxes on activities or engage in tax planning which moves revenue from high-tax countries to low-tax ones to minimise tax payments. We only seek and accept tax incentives that are commonly available and where we fulfil the conditions for accepting.
In connection with mergers and acquisitions, DSV sometimes inherits non-operational offshore companies. In these instances, whenever this is the case, it is a priority to eliminate them as soon as possible. During this very time-consuming process, these companies are not used for tax optimisation.
Transfer pricing Our Transfer Pricing policy is aligned with our social responsibility: We apply the arm’s-length principle to our intercompany transactions and operate in accordance with the DSV Tax Policy, OECD guidelines and local applicable laws.
We maintain an open dialogue with tax authorities DSV maintains an open and transparent dialogue with tax authorities, to uphold our social responsibility and minimise potential disputes and double taxation.
We carefully monitor and assess risks DSV’s approach to tax-related risk management is identical to our overall approach to risk management. We carefully monitor and analyse any risks to achieve the greatest possible level of transparency and ensure that the right decisions are made in time to protect the business from any significant financial impact.
DSV has a low appetite for tax risks, but we recognise that they are difficult to eliminate entirely. Our Risk Management Framework is based on structured risk identification, analysis and reporting processes providing the basis for risk assessments and subsequent initiation of relevant mitigation actions. We have processes in place to ensure that our Risk Management Framework is embedded across non-tax functions as well as tax functions. We monitor tax compliance through risk ratings of entities which are re-evaluated annually, and reports received from local management, covering key tax information and compliance status. Issues identified through these reports are handled in accordance with established remediation plans and reviewed through our system of internal controls and monitoring. DSV makes use of external tax advisors to ensure compliant tax returns as well as transactions.
Roles and responsibility
The DSV Board of Directors has the overall responsibility for this Policy and the framework for compliance with tax legislation. Day-to-day responsibility lies with the Group CFO, supported by the Group Tax department. Group Tax manages the DSV Tax Framework and issues guidelines to ensure that tax legislation is observed and complied with throughout the DSV Group. At subsidiary level, local management is responsible for ensuring compliance with tax legislation as well as implementing DSV’s global tax governance principles as outlined in this Policy. Group Tax and local management monitor updates and changes to tax legislation and practices to assess the impact on the DSV Group. DSV’s Global Tax Policy is reviewed on an annual basis by the Board of Directors. Furthermore, operational tax matters, including how tax risks are monitored and managed, are reported to the Audit Committee on a periodic basis. Approved by the DSV Board of Directors, 2 February 2023.