Fiscal Transparency at Telefónica: commitment and responsibility

Fiscal transparency is a fundamental pillar in Telefónica’s corporate responsibility strategy. The company understands that clear and responsible tax management not only strengthens its reputation, but also contributes significantly to the economic and social development of the communities in which it operates. In this context, Telefónica has published its 2025 Fiscal Transparency Report, reaffirming its commitment to openness and regulatory compliance in tax matters.

Telefónica’s tax policy is based on its Responsible Business Principles, always acting with integrity, legality and tax transparency. The company adheres to the OECD guidelines for multinational companies, ensuring rigorous compliance with its tax obligations in all the territories where it operates.

Taxation is understood as a key contribution to economic and social development, in line with the UN Sustainable Development Goals (SDGs). In addition, Telefónica publicly reports its total tax contribution, and does so in accordance with the GRI 207 international standard, which reinforces its commitment to sustainability and transparency.

Fiscal governance at Telefónica is designed to ensure effective and transparent tax management. The Board of Directors is the body responsible for determining and approving the Group’s tax policy and strategy, reflecting the importance that the company attaches to this area. The Group’s Tax Department, together with the Regional Divisions, develops and supervises the implementation of the tax strategy, periodically reporting to the Audit and Control Committee on tax policies, associated risks and operations of tax relevance. This structure allows for effective oversight and seamless communication between the various levels of the organization, ensuring regulatory compliance and tax risk mitigation.

Telefónica’s Fiscal Control Policy, approved by its Board of Directors, establishes the fundamental principles that guide its tax actions. Its objectives include:

• The correct compliance, in a timely manner, of tax obligations.
• The effectiveness and efficiency of operations from a tax perspective.
• The taking of positions or the fiscal strategy duly supported and documented.
• The reliability of tax information.
• Transparency before third parties, especially before the Tax Administration.
• Managing tax risks

Telefónica’s taxation goes beyond regulatory compliance: it is a strategic lever of corporate responsibility aligned with the principles of the OECD, the international body that sets tax guidelines for multinational companies and whose significance is linked to the promotion of fair, transparent taxation without abusive planning.

The results of the 2025 Fiscal Transparency Report demonstrate with concrete figures the extent to which Telefónica’s tax transparency meets — and exceeds — those standards: €7,472 million in total tax contribution, a ratio of €21.3 for every €100 of turnover, and a country-by-country breakdown of tax presence across all jurisdictions where the Group operates.

Three milestones particularly reinforce Telefónica’s leadership in tax transparency this year.

• First, the ongoing adherence since 2010 to the Code of Good Tax Practices, a voluntary framework promoted by the Spanish Tax Agency that fosters a cooperative and transparent relationship between large companies and the tax administration.
  
  
• Second, the voluntary publication of the report Country-by-Country (CbCR) several years ahead of its legal requirement, demonstrating the company’s commitment to accountability.
  
  
• Third, the highest S&P Global CSA score in tax transparency, achieved once again, which positions Telefónica as a sector benchmark in responsible taxation at a global scale.
  
  

Telefónica’s fiscal management is not without its challenges. The company continuously identifies and evaluates the impacts, risks and opportunities associated with its tax activity. This includes analysing legislative changes, managing tax disputes, and identifying opportunities to optimize its tax contribution responsibly. This management is articulated through a Risk Management Model based on the COSO (Committee of Sponsoring Organizations of the Treadway Commission) framework, which allows a structured and effective methodology to be applied to anticipate and mitigate possible risks.

By proactively addressing these aspects, Telefónica seeks to minimize risks and take advantage of opportunities that contribute to its sustainability and that of the communities where it operates. On the other hand, as a result of the entry into force of DAC 6 (Directive on Administrative Cooperation), the Company has developed a procedure to detect and report the mechanisms subject to notification.

Telefónica has outlined an action plan focused on the continuous improvement of its tax policies, the training of its team and the promotion of a culture of integrity. As part of its commitment to tax transparency, it maintains an open dialogue with tax authorities, both nationally and internationally, and has adhered to the Code of Good Tax Practices since 2010. In addition, it actively participates in national and international forums, contributing to legislative initiatives and fostering relationships of trust with key stakeholders, such as NGOs, business associations and public bodies.

During 2025, Telefónica has made significant progress in its commitment to tax transparency. The company’s total tax contribution amounted to €7,472 million,, of which €2,360 million corresponds to taxes borne directly and €5,112 million to taxes collected on behalf of tax administrations. These data reflect the positive impact and commitment of the company to the local economies in which it operates.​ 

For every 100 euros of turnover, we spend 21.3 euros in taxes (6.7 on taxes borne and 14.6 on taxes collected).

Telefónica’s tax contribution is not limited to Corporate Income Tax, but also covers fees, local taxes, social security payments and taxes collected on behalf of third parties, such as withholdings and indirect taxes. This broad view is reflected in its Country by Country Report, which details its tax presence in each jurisdiction. In 2025, for example, the company contributed €3,043 million in Spain and €2,207 million in Brazil.

The publication of the 2025 Fiscal Transparency Report underlines Telefónica’s firm commitment to ethical, transparent and responsible tax management. Telefónica has been one of the 45 companies that have voluntarily submitted the Transparency Report for the 2024 financial year to the Tax Authorities in Spain, a practice it has maintained on a voluntary basis since the 2016 financial year. 

Telefónica’s commitment to fiscal transparency continues to be recognised by the leading international indices and organisations. In 2025, S&P Global CSA has once again awarded Telefónica the highest score in tax transparency, consolidating its position as a benchmark in the sector.

The company understands that its tax contribution is essential for the sustainable development of the societies in which it operates and, therefore, continues to strengthen its policies and practices in this area.​

For further details on Telefónica’s initiatives and results in the area of tax transparency, we invite you to download the full report.