Tax
Approach to taxation
Integrity and legally compliant conduct are firmly embedded within HHLA. This also applies to the fulfilment of its tax obligations. As a company with international activities, HHLA is subject to the tax laws of the respective national jurisdictions in which it operates. HHLA pays the taxes due in line with the relevant legal requirements of the countries in which the company operates. To this end, the Group has established structures and processes to ensure the continuous monitoring of and compliance with tax law requirements, and cultivates a transparent and open dialogue with the relevant tax authorities.
In 2024, the Group’s effective tax rate stood at 38.0 % (previous year: 33.6 %). The income tax expense for the HHLA Group amounted to € 34.5 million in 2024 (previous year: € 21.4 million), of which around 51 % (previous year: 37 %) was attributable to Germany and around 49 % (previous year: 63 %) to the foreign subsidiaries.
Tax compliance management system (TCMS)
An experienced team of tax experts in Hamburg and in the local subsidiaries ensures that potential tax risks are identified in good time. The monitoring process for compliance with tax requirements is an integral part of the internal control system (ICS). Risk and opportunity management
Tax risks may arise for HHLA as a result of tax audits, changes in tax legislation or other factors that may have an effect on the effective tax rate and liquidity. If tax burdens are expected by the company, they are taken into account – where they are quantifiable – by creating the relevant provisions.
In order to prevent potential tax risks, HHLA’s tax processes are continually monitored and controlled by a tax compliance management system (TCMS). HHLA started implementing the TCMS in 2019. For domestic companies receiving tax consultancy services, it was completed and audited in 2023. The integration of the foreign companies into the TCMS is currently being finalised. In doing so, the HHLA Group fulfils the requirement under German tax law for companies to implement such a compliance management system in order to protect the company and its legal representatives.
Reporting standards
As an international company with Group revenue of over € 750 million, HHLA is subject to the duty to report certain country-specific key figures. This is known as country-by-country reporting and is based on an initiative of the Organisation for Economic Cooperation and Development (OECD).
In this context, HHLA AG shares tax information every year with HGV for all Group companies as part of its legal requirement. This information includes revenue, earnings before taxes, income tax payments and the income taxes incurred, ensuring the transparent reporting of all company results and tax payments in the countries in which HHLA or its affiliated companies are active.
HHLA fully complies with the reporting and transparency requirements of the DAC6 reporting system introduced by the European Union (EU) and has implemented the relevant technical solutions.
For the 2024 financial year, the HHLA Group falls within the scope of the minimum taxation regulations, which are to be applied in financial years starting after 30 December 2023. The applicability and fiscal effects of minimum taxation have been reviewed quarterly since 2023. The applicable minimum tax rate has been calculated and recognised quarterly since 2024. To this end, the HHLA tax department has created the technical requirements for a reporting system that not only discloses the current and deferred taxes in the annual financial statements but also fulfils the mandatory reporting requirements of the above-mentioned country-by-country reporting, DAC-6 reporting and minimum taxation.