Providing NXP taxation principles, approach, governance and engagements applied across our geographic operational footprint.
Since our founding as a company, NXP has applied a tax strategy that is sustainable, transparent and fully aligned with well-known and widely recognized international tax principles. NXP aims to support stable, transparent and predictable tax systems that incentivize long-term investments and economic growth. NXP’s tax structures are based on global standards and frameworks supported by the Organization for Economic Cooperation and Development (OECD).
Within NXP, the tax department is led by a Senior Vice President (SVP), reporting directly to the Chief Financial Officer (CFO). The CFO is responsible for updating the Audit Committee of the Board of Directors on a regular basis, with support from the tax-department leadership. NXP reviews and approves tax plans and targets annually, consistent with industry-wide, best-in-class control and governance frameworks.
The NXP tax department is a centralized organization that manages both regional and functional requirements. The organization regularly engages with external tax advisors and/or local tax authorities to provide assurances that our tax obligations are properly, effectively, and correctly handled and disclosed in the annual and quarterly reports.
NXP operates on a global basis and is potentially exposed to numerous risks, including those related to taxation. The risks include, but are not limited to:
When evaluating the acceptable risk limits for taxes, we apply critical and professional reasoning on an issue-by-issue basis. NXP’s Tax Team applies critical and professional reasoning on an issue-by-issue basis to balance the acceptable risk limits as they relate to taxes. In addition, to support transparent financial reporting, NXP follows Generally Accepted Accounting Principles (GAAP), and has implemented a robust, effective and efficient tax-accounting control framework that assures compliance with the US 2002 Sarbanes-Oxley Act (SOX).
Potential violations of NXP’s Tax Policy can be confidentially reported using various reporting channels, such as management, an ethics liaison or the NXP Ethics Committee, or can be submitted using the phone or web option of our SpeakUp line, a system hosted by an independent third party that facilitates anonymous reporting. A strict policy of non-retaliation is in force to protect any team member who reports potential violations.
We are here to answer any inquiry regarding our corporate sustainability efforts, including EHS and environmental product compliance.