The taxes borne by the Group amounted to $3.6 billion in 2011. Taxes collected by Anglo American and remitted to government, including payroll taxes and VAT, amounted to $1.4 billion, giving a total tax footprint for the year of $5.0 billion, 77% of which was in developing countries.
The corporate tax charge in the Income Statement for the year $3.1 billion (including an equity share of associates’ tax). In 2011, the effective rate of corporate taxation paid was 28.3% (2010: 32.1%) and reflects our geographical mix of statutory tax rates. The cash corporation tax paid by the Group was $2.5 billion. Further analysis and reconciliation of tax data can be found in the Anglo American Annual Report 2011.
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Pie chart showing taxes borne and collected,
country by country, in developing countries |
Pie chart showing taxes borne and collected,
country by country, in developed countries |
Weighted average statutory tax rate
The statutory tax rates applicable in our main operating countries are calculated on the basis of all profits being distributed out of the country by way of dividends.
Our profits (after certain tax adjustments prescribed by local tax legislation) are subject to these statutory tax rates, and our Group tax charge and effective tax rate are a function of the resulting tax charges and the relative amounts of profits generated in each of the countries in which we operate.
The weighted average statutory tax rate represents the profits of the Group, multiplied by these statutory tax rates, ignoring the impact of any tax adjustments, and gives an indication of the effective tax rate to be expected given the countries in which we operate. For 2011, this weighted average statutory effective tax rate was 32.4%. As in most periods, the headline ETR is impacted by a number of non-recurring adjustments. The principal impact in 2011 relates to the recognition of previously unrecognised tax losses and the release of various withholding tax provisions across the Group, including those held in South Africa. Without these, the Group effective tax rate would have been 31.7%, which is broadly in line with the weighted average rate above.Taxes paid directly to governments by category and region ($ million)
Taxes generated over the life of a mine
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Profitability |
Taxes |
| Exploration |
Operating and capital expenditure |
Employee taxes, indirect taxes, and taxes paid by suppliers |
| Development |
Operating and significant capital expenditure |
Employee taxes, indirect taxes, and taxes paid by suppliers |
| Early production |
Recovery of investment |
Plus royalties |
| Full production |
Net profit |
Plus taxes on profit |
| Closedown |
Closure and rehabilitation costs |
As per exploration and development above |