Alko abides by the principles of sustainable business and operates openly and in compliance with current legislation, regulations, and agreements. The company does not accept bribery or corruption of any kind and adheres to economically responsible principles. Alko also expects the same from its partners.
Alko’s tax footprint is a billion euros
Taxes are paid according to Finnish laws on all sales and profits. Alko does not engage in tax planning or channel its funds into foreign accounts. Alko’s tax payments are channelled through the state budget to finance general government spending. They are an important source of revenue for the state, in financing social welfare and healthcare services, for example.
Alko’s business operations accrue considerable tax revenue for society. In 2020, sales generated EUR 656.1 (585.7) million in revenue from alcohol tax and EUR 311.2 (274.6) million in VAT. Alko’s sales accrued a total of EUR 107.1 million more in alcohol tax and VAT revenue than in 2019. Our suppliers pay the majority of the alcoholic beverage tax on products sold by Alko directly to the state. Our strong profitability increased the amount of corporation tax that Alko paid in 2020 compared to 2019: a total of EUR 12.9 (8.1) million.
Alko is wholly owned by the Finnish government. We paid our owner a dividend of EUR 60.0 (30.0) million from our revenue for 2020. Alko does not receive any financial assistance from the state.
Economic added value received by various stakeholders from Alko’s operations in 2020
- Customers – value of purchases: EUR 1,296.7 million
- Investments: EUR 6.1 million
- Owner – dividend: EUR 60.0 million
- Personnel – salaries, bonuses and personnel-related expenses: EUR 88.8 million
- Cooperation – grants and contributions: EUR 0.8 million
- Goods suppliers and service providers – procurements: EUR 1,137.0 million
Breakdown of Alko’s tax footprint (EUR million)
- Income taxes paid: 12.9
- Alcoholic beverage tax on sales: 656.1
- Withholding tax and social security contributions: 14.4
- Value-added tax on sales: 311.2
- Dividend: 60.0
Personnel – salaries, bonuses and personnel-related expenses: EUR 88.8 million
EUR 3.6 million more in salaries, bonuses and personnel-related expenses were paid than in 2019 – a total of EUR 88.8 million. Particular attention was paid to the availability of store staff. This was important, as we wanted to safeguard the quality of our customer experience in spite of increased customer numbers.
Organisations: EUR 0.8 million
Alko cooperates with several associations and organisations. The impact of these grants and contributions on full-year profit came to EUR 0.8 (0.5) million.
Alko did not give grants or subsidies to political parties. Collaboration is primarily based on joint projects whose objectives are specified in cooperation agreements and action plans. Alko’s Annual General Meeting decides on the recipients and maximum sum of Alko’s annual donations.