EDP Group's Tax Mission & Policy

The organisation’s tax strategy is designed to ensure robust, consistent, and responsible tax management across all jurisdictions in which it operates. This strategy is periodically reviewed and updated to reflect the evolving complexity of business operations and the dynamic regulatory environment. It is fully aligned with international best practices and the recommendations of the OECD, ensuring that tax management supports sustainable business growth, risk mitigation, and long-term value creation for all stakeholders.

EDP’s Boards of Directors is actively involved in the decision-making process for relevant operations and provides clear and comprehensive governance instructions by means of the EDP Financial Matters Committee – Audit Committee, upon delegation of the General Board. Those Committees specifically and proactively review EDP Group’s tax strategy, mission and principles on an annual basis, providing a based opinion to the Board and proposing changes to the scope and contents. Every strategic decision is based on and implemented following EDP Global Director of Tax’s opinion, which conversely leads a team of in-house tax advisors and functional expert units.

The Group has implemented different workflows considering the nature of the tax and the country, reinforcing the segregation of duties and the efficiency of internal controls, and reducing potential filing errors or failure to comply with tax obligations in a timely and complete manner.

Tax planning is based on genuine economic reasons, substance and form, and avoids aggressive tax treatments. The Group explicitly rejects artificial or opaque structures or arrangements; and transactions or operations in non-cooperative jurisdictions solely for tax advantage or to reduce its tax burden.

The Group seeks cooperative and assertive relationships with tax authorities, aiming to enhance legal certainty and reduce litigation, while defending the Group’s legitimate interests by either administrative or, when appropriate, judicial means when necessary. Such relations with Tax Authorities are always based on the principles of trust, good faith, transparency, cooperation, and reciprocity.

In the event of any related-party transactions, the Group applies the arm’s length principle following strict compliance with OECD guidelines and local regulations.

Furthermore, intercompany transactions and those with special tax risk are subject to review by a specific transfer pricing team and, if necessary, to the approval of the applicable Board of Directors. 

The tax implications and mitigation measures for such transactions are documented, with master and local documentation prepared as required by OECD practice. The Group maintains active binding unilateral, bilateral or multilateral agreements with different tax authorities to preventively or correctively determine the appropriate transfer-pricing methodology to apply to cross-border transactions.

EDP Group aims for transparent reports and publishes relevant information following all of the above exposed tax principles and policies considering the recipient of the information.

Tax relevant data and knowledge is disclosed in the Group’s financial statements and respective notes (see annual integrated report), providing stakeholders with a clear, useful, and accurate view of EDP Group’s contribution to the economies where it operates.

Furthermore, EDP, as a multinational group, fully complies with the annual communication and reporting obligations arising from the implementation of the provisions of Action 13 of the Base Erosion and Profit Shifting project (known as Country-by Country Reporting) and with the OECD/G20 BEPS Pillar Two framework, including the EU Directive and national legislation requiring a minimum effective tax rate of 15% for large multinational enterprises.

On top of all the above and considering its commitment, the Group publishes, on a yearly basis, starting in 2025, its Global Tax Footprint Report, providing a detailed breakdown of all tax contributions made by EDP to the tax systems of all the countries in which it operates. This document reflects EDP's dedication to proactive and comprehensive cooperation with tax authorities.    

EDP Group maintains active collaborations with tax authorities, relevant private sector forums and associations, prioritising transparency and constructive dialogue.