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2022 Corporate Responsibility Report

Taxes

The Group Tax department is responsible for ensuring that the Deutsche Telekom Group pays taxes at the national and international level in accordance with the applicable laws. This includes the Group’s income taxes, which must also be regularly reported in our IFRS financial statements, VAT and income tax on salaries payable within the context of customer transactions and for Group employees, as well as other types of tax incurred in the Group.

Group Tax also ensures that the Group has an efficient tax structure within the framework of German and foreign tax laws as applicable in each country (avoidance of any unnecessary tax burden not prescribed by law). The goal is to achieve sustainable tax efficiency for the Group. In the view of Group Tax, transparent, trust-based cooperation with local tax authorities – for example, in connection with operationally advisable company reorganizations – plays an essential role in any efforts toward that goal.

In addition, Group Tax undertakes to contribute as much as possible to the success of Deutsche Telekom’s operations, e.g., by providing detailed advice regarding new business models or innovative technological developments. In such matters, it focuses particularly on directly clarifying any unresolved issues related to tax law, as well as on providing practical solutions to meeting all applicable tax requirements.

The company's “Tax Compliance, Sustainable Tax Efficiency, Tax as Valued Business Partner” tax strategy (including tax policy) has been approved by the Deutsche Telekom Board of Management.

For detailed information on the work of Group Tax, its principles, and its responsible approach to taxation, please refer to the detailed document “Tax strategy.”

Further information with regard to taxation of Deutsche Telekom
Additional information with regard to our taxes – for example, about our country-based reporting, and additional details about tax rates – is provided in the documents on Country-by-Country Reporting 2021, Country-by-Country Reporting 2022 and on the Cash Tax Rate Reconciliation.

In addition, Deutsche Telekom participates in initiatives aimed at developing a comprehensive approach to determining and publishing meaningful information about tax payments by enterprises and enterprise groups. The aim is to give a full and differentiated view of the various contributions to the financing of the public domain that are made in connection with or otherwise result from enterprises and entrepreneurial activities. In this context, for some years now, Deutsche Telekom has determined Total Tax Contribution figures for our key national companies in the telecommunications sector. This approach is explained in greater detail in the document on Total Tax Contribution, which also contains the respective information relating to our Group. Deutsche Telekom also intends to collect and publish such information in the coming years, and to extend its scope to additional national companies where applicable.