Our approach to taxation
In line with the strategic goal of being a PayTech leader in Europe, Nexi Group is engaged in a complex and transversal redesign of its processes, the objective of the correct application of tax regulations remains a priority for the Group.
Nexi tax approach is aligned with the Group’s mission and values. The Group is committed to being a honest and fair taxpayer who operates responsibly and to dealing transparently with the authorities.
This being the context, the management of taxation is functional to the Group's business and sustainable development, including a high level of attention to tax compliance, which mitigates the risk of unethical or illegal behavior, in line with the Code of Ethics, and the prevention of tax offenses under Models 231 and 262.
The Group monitors the risk of non-compliance with tax regulations. Likewise, as part of its Sustainability Policy, the Group reaffirms its commitment to comply with tax regulations and to reduce the level of tax-related risks. To reduce the risk of litigation and the correct interpretation of tax regulations is pursued through participation in working groups with expert opinions provided by professionals and the guidelines of the Internal Revenue Service.
This approach will be gradually extended to Nets as the integration process currently underway evolves. Information on the Group's activities in each country was provided in detail through the Country-by-Country Report (Law No. 208 of December 28, 2015) for the year 2023, filed at the end of 2024 and “Pillar 2” introduced in Europe by EU Directive 2022/2523 and regulated in Italy by Legislative Decree 209 of 2023, for which the setup of an IT system aimed at the automatic collection of data from accounting systems is in the process of being completed.
Governance, control, and risk management in the fiscal area
Although tax strategy and a control framework are not explicitly formalized, the goal of proper tax enforcement remains a priority for the Group which is assisted in the main tax compliance obligations by major tax law firms.
Controls are provided for in the 262 framework. General whistleblowing and liability safeguards under Mod. D. Lgs. no. 231/2001 provides reporting of unethical or illegal behavior and organizational integrity specifically. In addition, the Nexi Group duly complies with IAS disclosure requirements in its annual report (e.g., IAS 37 disclosure on tax disputes).
Stakeholder engagement and management of tax-related reports
Each company of the Group is responsible for tax risk management and is supported, when necessary, by the Group Tax within the Group's Accounting and Taxation Department in the CFO function. Nexi Group’s appetite for tax risk is very low, and for this reason the Group provides documents and procedures in order to ensure the correctness and completeness of data for tax reporting and tax payments purposes.
The Group does not tolerate any kind of tax avoidance and evasion. The management of tax compliance is controlled by the correct interpretation of tax regulations, which is pursued through participation in working groups, considering the expert opinions provided by professionals of primary standing and the guidelines of the local Tax Authorities. Relations with the Internal Revenue Service are oriented toward maximum transparency and avoidance of litigation. Nexi, also with the intention of promptly monitoring legislative developments and interpretations of the Tax Authority, adheres to trade associations such as APSP (Association of Payment Service Providers) and ABI (Italian Banking Association).
Regarding the relation with the Tax authority, the Group acts openly and proactively through a constant and productive dialogue. Moreover, Nexi Group seeks to comply with all tax filing, tax reporting and tax payment obligations, in a spirit of cooperative compliance while maintaining a transparent relationship in the countries in which the Group operates.
Our tax planning
Nexi Group does not consider any aggressive tax planning and does not want to support the use of artificial structures, nor does undertake transactions to artificially transfer value to low tax jurisdictions or tax havens that are established in order to avoid paying tax and have no business purpose or economic substance.
Since Nexi Group operates throughout Europe, it is engaged in many transactions between international customers and companies. In line with internationally recognized rules for cross border transactions, the pricing of these transactions are aimed at reflecting an arm’s length price.
The pricing is driven by the activities undertaken and the value created in the countries.
This approach is expected to be consistently applied in all countries where Nexi Group operates and balancing what the local tax laws prescribe and allow.