We pay corporate income taxes where added value is created and where profit is generated. Taxes are paid in accordance with the local tax legislation and regulations of the country in question. Our consistently positive financial performance also generates higher corporate income tax revenues. Due to our corporate and operational structure, we mainly report and pay our corporate income taxes in the countries of production and in the countries where innovations are being developed.
In addition to the taxes we pay on income, our various production inputs and outputs are also subject to taxation. These are typically local taxes in the countries of production (for example, energy taxes, real estate/land and property taxes) or in the countries where our customers are located (for example, value added taxes, customs and duties and various excise taxes). These taxes may either be paid or collected by UPM for further remittance to tax authorities. In addition to these taxes, our local impact is augmented by the taxes paid in local communities by our employees and by those indirectly employed by us.