A Decade of Progress: 9 out of 10 of Companies Now Publish Tax Strategies

After ten years of commitment to enhancing tax transparency, the Tax Transparency Benchmark 2024 reveals that 93% of companies in scope now publish their tax strategies—a significant leap from a little under half (45%) in 2015. This milestone underscores a transformative shift in corporate accountability, aligning tax governance with sustainability and stakeholder expectations. Dutch companies have shown stagnation in the last few years, while Italian and Spanish firms have demonstrated notable improvements.

Tax Transparency: Leaders and Lagging Areas

Philips, Enel, and NN Group emerged as leaders, scoring a perfect 38 points, showcasing exemplary practices in transparency and governance. Yet, progress remains uneven. Stakeholder engagement, a crucial component of tax transparency, has only marginally improved, from 23% in 2015 to 27% in 2024, highlighting the need for deeper dialogues with external stakeholders.

“While the progress in publishing tax strategies is commendable, companies must not lose sight of the broader picture—integrating stakeholder feedback and aligning tax practices with sustainability goals,” remarked Keetie van der Torren-Jakma, Director of Tax Policy at PwC Netherlands.

Tax and Sustainability Regulation

The Corporate Sustainability Reporting Directive (CSRD) continues to shape the landscape, but many companies believe tax will not be a material issue under the current criteria. Despite this, tax is increasingly considered integral to double materiality assessments, signalling its growing relevance in sustainability reporting.

“Tax is no longer just a compliance matter—it is a core component of corporate sustainability and a litmus test for corporate responsibility,” said Angelique Laskewitz, Executive Director at VBDO. “To truly lead, companies must make stakeholder engagement and materiality analyses central to their tax governance.”

As businesses grapple with evolving regulatory demands, the benchmark serves as a critical tool for promoting transparency and ethical tax practices. It empowers companies to align with stakeholder expectations and global sustainability goals.

About the Tax Transparency Benchmark

The Tax Transparency Benchmark, now in its 10th edition, is a comprehensive study conducted by the Dutch Association of Investors for Sustainable Development (VBDO) in collaboration with PwC Netherlands. It assesses 116 European stock-listed companies on six Good Tax Governance Principles, such as respecting the spirit of the law, managing tax risks and providing tax assurance.