Consolidated report of the Grupa Azoty Group on payments to governments | ||
for the 12 months ended 31 December 2023 | ||
(all amounts in PLN '000 unless indicated otherwise) | ||
Contents | ||
Policies followed in the preparation of this report on payments to governments | ||
Grupa Azoty Group | Page 2 of 8 |
Consolidated report of the Grupa Azoty Group on payments to governments for the 12 months ended 31 December 2023 (all amounts in PLN '000 unless indicated otherwise)
1. General information
1.1. Basis of accounting
This consolidated report on payments to governments has been prepared in accordance with Section 6a of the Accounting Act of 29 September 1994 (the "Act") (Dz.U. of 2023, item 120, as amended), and presents payments to governments made by the Grupa Azoty Group with regard to the upstream sector.
To satisfy the requirements of Art. 63e-Art. 63k of the Act, the Grupa Azoty Group prepares a consolidated report on payments to governments including information on:
- Total amount of payments made to governments in a given country, broken down into payments made at appropriate government levels;
- Total amount of payments made to governments in a given country, at appropriate government levels, broken down into payment categories set out in Art. 63e.6 of the Accounting Act,
- Where payments have been assigned by the entity to a specific project − total amount of payments for each project, broken down into payment categories set out in Art. 63e.6 of the Accounting Act.
Grupa Azoty S.A. (the "Parent"), as the parent of the Grupa Azoty Group (the "Group"), is obliged to issue a consolidated report on payments to governments as at 31 December 2023, including data of the Group companies operating in the upstream sector.
Payments to governments presented in this report are related to the exploration for, appraisal and production of sulfur in Poland.
1.2. Description of the Group
Group Azoty S.A. was entered in the Register of Businesses in the National Court Register (entry No. KRS 0000075450) on 28 December 2001, pursuant to a ruling of the District Court for Kraków-Śródmieście in Kraków, 12th Commercial Division of the National Court Register, dated 28 December 2001. The Parent's REGON number for public statistics purposes is 850002268.
The Grupa Azoty Group is one of Central Europe's major chemical groups with a strong presence on the market of mineral fertilizers, engineering plastics, OXO products, and other chemicals.
1.3. Upstream operations
In 2023, the Grupa Azoty Group included one company operating in the upstream sector: Grupa Azoty Kopalnie i Zakłady Chemiczne Siarki Siarkopol S.A., with its registered office in Grzybów, Kielce Province. Grupa Azoty Kopalnie i Zakłady Chemiczne Siarki Siarkopol S.A. is Poland's largest producers of liquid sulfur.
Sulfur is produced at the Osiek Sulfur Mine, based on a closed-loop system for heat and formation water. On the premises of the Osiek Sulfur Mine, there is a sulfur granulation and pastillation unit enabling transformation of liquid sulfur into granules (sized 0.5mm-6.3mm) and pastilles. The key purpose of the granulation and pastillation processes is to facilitate and reduce the cost of long-haul transport (by sea). The Osiek Sulfur Mine is the only operational sulfur mine in the world. Sulfur is typically obtained through refining crude oil and natural gas. This product is economically competitive to sulfur extracted using the underground melting method as the costs of its production are charged to the main product - oil or gas, and sulfur is treated as a by-product or waste.
Grupa Azoty Group | Page 3 of 8 |
2. Payments to governments by country
Payments by country in 2023
POLAND:
Central and local authorities:
Pierwszy Mazowiecki Urząd Skarbowy (First Mazovian Revenue
Office)
County councils
Urząd Marszałkowski (Marshal Office)
Regionalna Dyrekcja Lasów Państwowych w Radomiu (Regional Directorate for State Forests in Radom)
Izba Celna w Nowym Targu (Customs Chamber in Nowy Targ) Narodowy Fundusz Ochrony Środowiska i Gospodarki Wodnej (National Fund for Environmental Protection and Water Management)
Ministry of Climate and Environmental Protection
Entities supervised or controlled by the authorities: Municipality and town municipal offices
TOTAL
Consolidated report of the Grupa Azoty Group on payments to governments for the 12 months ended 31 December 2023 (all amounts in PLN '000 unless indicated otherwise)
Taxes levied on income, production or | Licence fees, rental fees, | |||||||||
profits, excluding taxes levied on | Royalties | entry fees, and other | Total | |||||||
consumption, such as value added taxes, | considerations for | |||||||||
personal income taxes or sales taxes | licences or concessions | |||||||||
556 | - | - | 556 | |||||||
- | - | 190 | 190 | |||||||
- | 398 | - | 398 | |||||||
- | 488 | - | 488 | |||||||
87 | - | - | 87 | |||||||
- | 332 | - | 332 | |||||||
- | - | 323 | 323 | |||||||
- | 498 | 9,615 | 10,113 | |||||||
643 | 1,716 | 10,128 | 12,487 |
Grupa Azoty Group | Page 4 of 8 |
Payments by country in 2022
POLAND:
Central and local authorities:
Pierwszy Mazowiecki Urząd Skarbowy (First Mazovian Revenue
Office)
County councils
Urząd Marszałkowski (Marshal Office)
Regionalna Dyrekcja Lasów Państwowych w Radomiu (Regional Directorate for State Forests in Radom)
Izba Celna w Nowym Targu (Customs Chamber in Nowy Targ) Narodowy Fundusz Ochrony Środowiska i Gospodarki Wodnej (National Fund for Environmental Protection and Water Management)
Ministry of Climate and Environmental Protection
Entities supervised or controlled by the authorities: Municipality and town municipal offices
TOTAL
Consolidated report of the Grupa Azoty Group on payments to governments for the 12 months ended 31 December 2023 (all amounts in PLN '000 unless indicated otherwise)
Taxes levied on income, production or | Licence fees, rental fees, | |||||||||
profits, excluding taxes levied on | Royalties | entry fees, and other | Total | |||||||
consumption, such as value added taxes, | considerations for | |||||||||
personal income taxes or sales taxes | licences or concessions | |||||||||
7,173 | - | - | 7,173 | |||||||
- | - | 158 | 158 | |||||||
- | 225 | - | 225 | |||||||
- | 318 | - | 318 | |||||||
110 | - | - | 110 | |||||||
- | 320 | - | 320 | |||||||
- | - | 345 | 345 | |||||||
- | 481 | 8,686 | 9,167 | |||||||
7,283 | 1,344 | 9,189 | 17,816 |
Grupa Azoty Group | Page 5 of 8 |
Consolidated report of the Grupa Azoty Group on payments to governments for the 12 months ended 31 December 2023 (all amounts in PLN '000 unless indicated otherwise)
3. Payments to governments by project
Payments by project in 2023
Taxes levied on income, production or profits, | Licence fees, rental fees, entry | |||||||||
excluding taxes levied on consumption, such as | ||||||||||
Royalties | fees, and other considerations for | Total | ||||||||
value added taxes, personal income taxes or sales | ||||||||||
licences or concessions | ||||||||||
taxes | ||||||||||
Payments at project level | ||||||||||
Sulfur Mining Project | 344 | 830 | 323 | 1,497 | ||||||
Total projects | 344 | 830 | 323 | 1,497 | ||||||
Payments at entity level | ||||||||||
Payments at | ||||||||||
Grupa Azoty KiZCh Siarkopol S.A.1) | 299 | 886 | 9,805 | 10,990 | ||||||
Total payments at entity level | 299 | 886 | 9,805 | 10,988 | ||||||
TOTAL | 643 | 1,716 | 10,128 | 12,487 |
- The largest item of taxes levied (PLN 212 thousand) is value added tax; the largest item of fees is property tax (PLN 9,581 thousand) and royalties (PLN 830 thousand).
Payments by project in 2022
Taxes levied on income, production or profits, | Licence fees, rental fees, entry | |||||||||
excluding taxes levied on consumption, such as | ||||||||||
Royalties | fees, and other considerations for | Total | ||||||||
value added taxes, personal income taxes or sales | ||||||||||
licences or concessions | ||||||||||
taxes | ||||||||||
Payments at project level | ||||||||||
Sulfur Mining Project | 317 | 801 | 345 | 1,463 | ||||||
Total projects | 317 | 801 | 345 | 1,463 | ||||||
Payments at entity level | ||||||||||
Payments at | ||||||||||
Grupa Azoty KiZCh Siarkopol S.A.1) | 6,966 | 543 | 8,844 | 16,353 | ||||||
Total payments at entity level | 6,966 | 543 | 8,844 | 16,353 | ||||||
TOTAL | 7,283 | 1,344 | 9,189 | 17,816 |
- The largest item of taxes levied (PLN 6,428 thousand) is corporate income tax; the largest item of fees is property tax (PLN 8,653 thousand) and royalties (PLN 801 thousand).
Grupa Azoty Group | Page 6 of 8 |
Consolidated report of the Grupa Azoty Group on payments to governments for the 12 months ended 31 December 2023 (all amounts in PLN '000 unless indicated otherwise)
4. Policies followed in the preparation of this report on payments to governments
4.1. Key preparation policies
This consolidated report on payments to governments has been prepared on a cash basis. In 2023, no in-kind payments were made.
The data contained in this consolidated report on payments to governments is presented in the Polish zloty, rounded to the nearest thousand. The Polish złoty is the Group's functional currency.
4.2. Key presentation policies
The following presentation policies have been applied in the preparation of this consolidated report on payments to governments:
Payments
Amounts paid to governments - appropriate tax authorities of the Republic of Poland, related to the exploration for, discovery, development and production of sulfur (upstream operations).
Governments
Government means any national, regional and local authority, including entities supervised or controlled by such authorities (including state-owned companies).
Projects
A project is defined as operational activities carried out in a distinct exploration area under a licence obtained for that area, which form the basis for payment liabilities to a government in a given country.
Payments are disclosed at project level, except where it is impossible to assign them to a given project - in such cases payments are disclosed at entity level.
Identified payment categories
-
Taxes levied on income, production or profits of the companies, excluding taxes levied on consumption, such as value added taxes, personal income taxes or sales taxes.
This payment category includes also excise tax on electricity consumption and interest accrued from the date of classifying amounts spent on acquisition or production of assets as tax-deductible expenses until the date on which the period of their use exceeds one year. - Royalties.
This item includes emission charges, annual charges, and environmental charges. - Licence fees, rental fees, entry fees, and other considerations for licences or concessions.
This category includes also payments related to tax on means of transport used in upstream operations and paid property taxes.
Grupa Azoty Group | Page 7 of 8 |
Consolidated report of the Grupa Azoty Group on payments to governments for the 12 months ended 31 December 2023 (all amounts in PLN '000 unless indicated otherwise)
Signatures of members of the Management Board
Signed with qualified electronic signature | Signed with qualified electronic signature |
_____________________ | _____________________ |
Adam Leszkiewicz | Paweł Bielski |
President of the Management Board | Vice President of the Management Board |
Signed with qualified electronic signature | Signed with qualified electronic signature |
_____________________ | _____________________ |
Andrzej Dawidowski | Hubert Kamola |
Vice President of the Management Board | Vice President of the Management Board |
Signed with qualified electronic signature | Signed with qualified electronic signature |
_____________________ | _____________________ |
Krzysztof Kołodziejczyk | Andrzej Skolmowski |
Vice President of the Management Board | Vice President of the Management Board |
Signed with qualified electronic signature | |
_____________________ | |
Zbigniew Paprocki | |
Member of the Management Board Director | |
General | |
Tarnów, 29 April 2024 |
Grupa Azoty Group | Page 8 of 8 |
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Grupa Azoty SA published this content on 04 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 June 2024 14:07:07 UTC.