2024 universal registration document

Organisation

Centralised expertise and a strong geographical presence of the tax function in the Countries ensure compliance with these three pillars.

The Chief Financial Officers are responsible for tax compliance, backed up and relayed by the Tax and Accounting Departments. These departments monitor changes in tax regulations to ensure that the Group complies with these regulations. They are assisted, where applicable, by external advisors.

Centralised expertise

Within the Department of Operational Finance, the Group Tax Department ensures compliance with the Tax Policy in collaboration with the Finance Departments, through intermediaries in the form of different group-wide tax experts:

• Intra-group Transactions & Customs, which ensures compliance with tax and customs standards and secures the prices of intra-group transactions and the related documentation;
• Analytics & Compliance, which analyses, verifies and informs on the Group's compliance and global tax liability;
• Mergers and Acquisitions (M&A), which assists and provides tax advice on proposed merger-acquisition projects;
• Tax Digitalisation, which enables the Group to meet the new requirements for digitalisation imposed by the tax authorities (e-returns, e-invoicing, e-audits, etc.);
• Tax Governance, which ensures the correct deployment of the Group's tax policy;
• Digital Taxation and E-commerce, which assists and advises on the tax implications of e-commerce and digital projects; and
• Tax Operations and Supply Chain, which assists and advises the Operations Department.

Strong geographical presence

Accountable to the Chief Financial Officer of the Country/ Zone, the Tax Directors of 30 Countries have the following responsibilities:

• respect for compliance rules in collaboration with the accounting departments;
• assistance and tax advice to the operational teams in the context of their projects;
• tax directives, ongoing learning and pedagogy with other parties;
• management of the tax contribution;
• management of tax and customs risks, controls, claims and disputes;
• relations with the Tax and Customs Authorities and the other public authorities; and
• tax watch and best practices involving dialogue with peers, professional associations, external auditors and law firms.

This matrix organisation, combined with the Group's tax policy respect, are the basis of successful management of the tax burden and a responsible tax practice.

2024 tax contribution

In 2024, the amount of tax L'Oréal paid to governments and local authorities was €2.8 billion. In addition to income tax, L'Oréal pays and levies numerous taxes and contributions such as sales and purchase taxes, environmental taxes, property taxes and other local taxes. The breakdown of taxation is presented annually to the Audit Committee.

The Group's tax footprint, consistent with its operational and geographical footprint, breaks down as follows in 2024