Tax Reporting

We see responsible taxpaying as an integral part of our operations and a way to create shared and sustainable value for our stakeholders, giving back to and serving our communities. This philosophy informs our approach to tax and investment. 
As a global enterprise, we are subject to multiple tax obligations, including royalties and other taxes on natural resource extraction. In Brazil, some states have industry-specific taxes on mining and related activities. Vale has a dedicated team of professionals with in-depth expertise and robust internal audit processes that review our tax reporting practices and procedures.  

Taxpaying is a core part of the relationship between corporations and society, supporting the development of local, national and global economies. That is why we take our tax responsibilities seriously.  

In 2023, Vale paid 

US$ 6.1 billion

in taxes, with more than 96% of this amount being paid in Brazil.
Over the past decade, our total economic contribution has reached US$ 356 billion. 

US$ 356 billion. 

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Our tax approach is based on five fundamental principles: 

  •  Transparency 
     
  • Creation of long-term value 
     
  • Effective risk management and control 
     
  •  Excellence in compliance 
     
  • Proactive and open engagement with tax authorities and stakeholders 
As part of our ongoing commitment to enhance transparency, since 2019 we have published a Tax Transparency Report describing the taxes we pay and how they contribute to our communities. In it, we report on taxes and royalties by country and by site, broken down into federal, state and local taxes. These voluntary reports are prepared in line with Global Reporting Initiative (GRI) Standard 207 – Tax.  

Every three years, we undergo assessments by the Extractive Industries Transparency Initiative (EITI). In the most recent assessment, in 2021, EITI highlighted our good practices and commended our compliance with the expectations set for companies supporting this initiative. 
 
Corporate income taxes  - US$ 1,918MM 
Payroll taxes  - US$ 1,097MM
Tax on mining  - US$ 1.312MM
Taxes on product and service  - US$ 1.612MM
Other taxes  - US$ 175MM
Workforce  - 215.347
Total taxes - US$ 6,112MM
Tax payments by region
(in US$ million)

Tax payments by level of governmentWe allocated a fee of US$29,241,288 for the Community Development and Empowerment Program (PPM) according to our PPM Master Plan for 2018-2025 as a form of corporate social responsibility (CSR).
(in US$ million)

Program implementation and evaluation of our program sustainability are the responsibility of the External Relations Department. We conduct regular audits to improve the performance of the social programs we run.

During 2021, around 43,205 people in our empowerment areas were beneficiaries of the PPM implementation, with the number of funds we disbursed 2.6 million USD.

We carry out various activities to improve essential services such as infrastructure accessibility, education, health, local institutional organizations, and environmental conservation to support the development of the community's economic status, thus supporting the realization of a sustainable livelihood.

Various facilities and support for capacity building are planned and managed through partnerships so that all parties can take part in taking roles and assessing the impact of changes in the program's success that was announced together.

Controlled Foreign Corporation (CFC) Taxation 

All Vale entities are subject to CFC rules as Brazil is the jurisdiction of our ultimate parent entity. Brazilian CFC rules are among the strictest in the world, as they require the taxation in Brazil of the statutory profits of all direct and indirect foreign subsidiaries and affiliates, regardless of their location. All such profits are taxable based on ownership percentage at a statutory rate of 34%, with compensation for corporate income tax paid abroad. 

Tax incentives 

We access tax incentives in some of the jurisdictions in which we operate, which are available to all taxpayers. In some cases, tax incentives are dependent on meeting certain threshold criteria in relation to employment or economic activity in our wider supply chain. None of the regimes under which Vale has been granted incentives are noted by the OECD as being a harmful tax practice. 

The total amount of incentives available for Vale in Brazil for the year 2023, were nearly $ 1.2 billion, of which 88% corresponded to incentives related to operations in the north region of Brazil (SUDAM).
In Brazil, in 2022, the total amount of incentives available to Vale was approximately US$ 1.4 billion, with nearly 90% of this amount being related to our operations in Brazil’s North. This includes incentives linked to investments in the Amazon Development Agency (SUDAM). In the North, we have a workforce of approximately 50,000 people, including 16,000 direct employees. To support investments in the region — which accounts for 60% of our production output — the proceeds from these incentives cannot be distributed to shareholders.