Total Tax Contribution framework

What is the Total Tax Contribution framework and what will it tell me?

The PwC Total Tax Contribution (TTC) is a framework for measuring an organisation's economic contribution in taxes – the direct and indirect taxes paid by a company as well as those it collects on behalf of the Government. Importantly, the framework allows companies to facilitate collecting and reporting total tax information in a consistent manner, to meet the needs of stakeholders and improve transparency.

The PwC Total Tax Contribution framework focuses on four areas that represent a Swiss company's overall taxation contribution. These are:

• Business taxes borne by the business – taxes that impact the profit and loss account.
• Business taxes collected – from customers and employees that are then remitted to government. 

• Employers's contributions to individual income taxes created by companies' salary payments

• Tax compliance costs – incurred in assessing and remitting taxes borne and taxes collected.

Developed with the input of several large companies, the Total Tax Contribution framework provides a standardised approach to identifying a company's overall tax contribution. It is a framework that can be used on a country-by-country basis or on a global basis. PwC now has TTC expertise in a wide range of countries, including knowledge of all the business taxes that operate in the countries and can provide a data collection tool, suggests sources of data and where it is acceptable to use estimates.

Our Total Tax Contribution team can help companies collect their data, consider appropriate benchmarks and help them decide how they will communicate their total tax contribution to stakeholders.

What are the benefits?

Having a clear understanding of its total tax contribution can enable a business to make thoroughly informed decisions, demonstrate its wide social and economic impact and improve monitoring and managing tax risk. There is increased interest in the company's tax position by a wide range of stakeholders, often in terms of the link between tax and corporate social responsibility.

Using a robust methodology, standardised across industries, PwC can help companies collect this data which can then be used to:

• Manage tax costs
• Make strategic decisions
• Benchmark the business
• Communicate tax contributions – an accurate picture of a company's total tax contribution could be communicated in:
• the annual report;
• corporate responsibility reports;
• economic impact reports;
• PR and marketing campaigns; and
• investor communications.