Inter IKEA Group

Tax Report
FY23
Introduction

The Inter IKEA Group Tax Report provides information on the taxes
paidby!nter!KEAGroupcompaniesforthenancial 1 yearFY2
( 320 .)3
FY2is
3 theperiodfromSeptember
1 to
2 0 August
13 .320
15.8%
effective tax rate
299
million EUR corporate
Comparedtolastyear,!nter!KEAGroupsincometaxexpense
FY22 23.7% income tax paid
increasedtoEURmillion 703 EUR
( million
12 inFY2The
.)2 e0ective FY22 322
taxratedecreasedtoin %7.32( %8.51 FY2and
)2 theamountof
corporateincometaxpaidinFY2payment (3 oftaxdueoftentakes 299
million EUR
placeinadi0erentyear)decreasedtoEURmillion 92 EUR
( million
23

2,032
inFY2The
.)2 totaltaxcontributionof!nter!KEAGroupincreasedto
EURmillion
230, EUR
( million
69 ,1 inFY2!n.)2 thisreportwewillgive
furtherinsightintooure0ectivetaxrate,country-by-countryreport
million EUR total
andtotaltaxcontribution. tax contribution
FY22 1,996

The tax report is based on the information Inter IKEA Group provides
inotherpublications:

• The!nter!KEAGroupFinancialSummaryFY2.3 FY23 FY22

Jurisdictions 30 31
• The!nter!KEAGroupAnnualReportFY2.3
Co-workers FTE)
( 1
24,944 27,331

!nter!KEAGroupalsopublishesayearly!KEASustainabilityReport. Revenuein
( EURbillion) 29.1 27.6
However,the!KEASustainabilityReporthasadi0erentscopeand
Netresult
( EURmillion)
in 1,639 710
coversallcompaniesworkingunderthe!KEAbrandacrossthe!KEA
franchisesystem. Assetsin
( EURbillion)2 23.0 24.7

1
Averagefull-timeequivalentFTE)
( duringnancial
1 year
2
Balancesheetpositionaspernancial
1 year-end

2 | Inter IKEA Group Tax Report FY23

 About Inter IKEA Group
!nter!KEAHoldingB.V.istheholding
companyofthe!nter!KEAGroup.!nter!KEA
HoldingB.V.isbasedintheNetherlands
wherethegroupmanagementof!nter!KEA
Groupislocated.
!nter!KEAGrouphasthreecorebusinesses:
Franchise,RangeandSupply.Thecore
businessesworktogetherwithfranchisees
andsupplierstoco-createthe!KEAo0er
andfranchisesystem.!nter!KEAGroup
aimstoprovidethebestpossibleconditions
forimplementingandoperatingthe!KEA
Concept,andtocreateastrongplatformfor
growth.
Franchise
Franchiseconsistsof!nter!KEASystemsB.V., relatedbusinesses.!KEASupplyAG,based
basedintheNetherlands,anditssubsidiaries, inSwitzerland,receivedtheassignment
including!KEAMarketingCommunication
& from!nter!KEASystemsB.V.tosourceand
AB.!nter!KEASystemsB.V.istheworldwide
!KEAfranchisorandownerofthe!KEA
Conceptwhich
( includesthe!KEAbrand).
!nter!KEASystemsB.V.continuouslydevelops
the!KEAConceptandensuresitssuccessful
implementationinnewandexistingmarkets.
Thisenables!KEAtoremainforward-looking
3 | Inter IKEA Group Tax Report FY23
inareassuchasbranddevelopment,
sustainability,peopleandenvironment,
marketpotentialandexpansion.!KEA
MarketingCommunication
& ABdevelops
andcreates!KEAcommunicationcontent.
Range
Rangeincludes!KEAofSwedenAB,based
inSweden,andrelatedbusinesses.!tis
responsiblefordesigninganddevelopingthe
overall!KEAproductrange,includinghome
furnishings,foodandpackagingsolutions,
underassignmentof!nter!KEASystemsB.V.
Supply
Supplyincludes!KEASupplyAG,!KEA
!ndustryAB,!KEAComponentsABand
distribute!KEAproductsto!KEAfranchisees.
The majority of the IKEA products are sourced
inEuropeandapproximatelyare %09
sourcedfromexternalsuppliers.!KEASupply
AGmanagesandoperatesthe!KEAsupply
chaintogetherwithitswholesalesubsidiaries
andexternalbusinesspartners,suchas
transportserviceproviders,warehouse
providersandcustomsbrokers.
!KEA!ndustryABisastrategic!KEA
manufacturerwhosemanagementteamsits
withintheSupplycorebusinessbutwhose
groupoflegalentitiesareplaceddirectly Swedenisalsopartof!nter!KEAGroup.
under!nter!KEAHoldingB.V.!KEA!ndustry
produces!KEAhomefurnishingproducts
anddevelopsunique!KEAmanufacturing
capabilitiesinrelevantpartsofthesupplycontrolledby!nter!KEAFoundation,based
chain.!KEA!ndustryproducesapproximately inLiechtenstein.!nFY2the
of
% 0 1 the!KEAproductrange,withamain
focusonwood-basedfurniture.
!KEAComponentsABdevelops,sources,
packsandsuppliescomponents,suchas
screwsandwoodendowelsthatareusedto
assemble!KEAfurniture.
Other functions
!nter!KEAGroupalsoincludesgroup
functionstosupportthecorebusinesses,
suchasHumanResources,Communication,
Risk,Finance,Legalandotheractivities.!KEA
lmhult
Ä AB,whichownsandoperatesthe
!KEAHotelland!KEAMuseuminlmhult,
Ä
Ownership
!nter!KEAGroupisfullyownedand
TheIKEA
3 ownershipof franchiseytm
!nter!KEAGroupwastransferredto!nter!KEA yn.asm e i umbteashiT cnarf si AEKI
Foundationfrom!nterogoFoundationand people and many companies with different
!nterogoHoldingAG.AsofAugust
13 ,320 l a – dnarb AEKI eno r dnu krow s enwo
fo n is v AEKI eht o detacide creating a better
!nter!KEAFoundationistheonlyshareholder
everyday il fe for the many peoplAEKI ehte
dna
andultimateownerof!nter!KEAGroup. aedi s eni ub toogerawiderangeofwell-
designed, functional home furnishing products
atpricessolowthatasmanypeopleaspossible
willbeabletoagordthem xat sih .fo ep cs ehT
seod ti – puorG AEKI retnI ht o detim l si trope
ohw se ihcnarf AEKI tned p ni eht r voc t n
Inter IKEA
Holding B.V. )slen ahc sela rehto dna( serot AEKI etar po
.dlrow eht dnuora

n.orietam ofins.avekriom lPf moc

and a simplified overview of the IKEA franchise
Inter IKEA IKEA of IKEA IKEA .metsy
Systems B.V. Sweden AB Supply AG Industry AB

Overview of Inter IKEA Group

4 | Inter IKEA Group Tax Report FY23


Taxuditsn
investgao
si no t p xa s’ uorG AEKI etn
seit roh ua x t e yb d w iver yl a ug
.etarpowhci nsotcidrujehtfo
lanoit um rehto iw sa t uj dnA
,seinapmtofcsiduaxtesh
ne b vah t secirp f na t rec o
.seinapmocurgnewtbdilpa
cipot n am eh osl i gn c rp efsna T
noitag sevn dia t s gnid ep ht fo
detra s noi m C naeporuE ht a
drage htiw sdnalreht N sniag
de ulcno rew tah sgnilur owt
.BsmetySAEKIretnhiw.V 2006
2011.
dna
eht n w b ret am ylir p s
hctuD e dna ois m C naeporuE
.syelitufrohap GAEKIretn
eht o gnid pser yb d ta epo- c
nois m C naeporuE ht f snoi euq
andiscon1dentabouttheoutcomeof
.erudcopht
5 | Inter IKEA Group Tax Report FY23
Ourtaxprinciples
Tax principle 1 - Compliance openandconstructivedialoguewithtax
Wearecommittedtocomplyingwithalltax authoritiestoachieveclarity.Thiswillalways
legislationandpayingtaxesinaccordance bedoneonthebasisoffulldisclosureof
withtherulesandregulationsinthe relevantfactsandcircumstances.
jurisdictionswhereweoperate.
Tax principle 5 - Transparency
Tax principle 2 - Business rationale We are transparent about our approach to
Webelievethattaxshouldfollowbusiness. taxandourtaxposition.Wedothisbygiving
Thereisalwaysabusinessreasonfor insightintohowoure0ectivetaxrateisbuilt
operatinginacertainjurisdiction.Wepaytaxup,disclosingourcountry-by-countryreport
inthejurisdictionswhereweoperatebased forcorporateincometaxandprovidinga
onthevaluecreatedthereandtheeconomic breakdownofourtotaltaxcontributionas (
realityofourbusiness. illustratedbythisreport).
ni Tax principle 3 - Transfer pricing Tax principle 6 - Governance
noitag sevn dia t s hT Weapplythearmslengthprincipleand Wehaveataxpolicyinplacebasedonour
followinternationaltransferpricingguidancetaxprinciplesthathasbeenapprovedby
whenpricingtransactionswithgroup theFinanceCommitteeofourManagement
companies.Weareconsistentinourpricing Board.TheFinanceCommitteereceives
acrossthejurisdictionswhereweoperate regularupdatesonmaterialtaxmatters,
and maintain documentation to support the andwealsoreportannuallytoourAudit
transferpricingpoliciesapplied. Committeeonourtaxposition.!nter!KEA
Grouphasthemechanismsinplaceto
Tax principle 4 - Relationship safeguardadherencetoourtaxpolicy.
with tax authorities
Weactwithintegritytowardstaxauthorities
inallthejurisdictionsweoperatein.When
taxlawiscomplexorunclear,westrivefor
 Oure0ectivetaxrate

!nFY2the
, 3 e0ectivetaxrateof!nter!KEA wassubjecttotherelativelylowerSwiss
GroupwasThe . % 8 . 5 1 e0ectivetaxrateshows taxrate.Thisledtoahighere0ectivetax
theaveragerateofcorporateincometaxthat rateinFY2!n
.2 FY2the
3 pro1tabilityof
ispayableby!nter!KEAGroupoveritspro1t. theSupplybusinessreturnedtonormal Tax expense if the nominal tax
rate in the Netherlands (25.8%) 502 25.8%
againwhichhadthereversee0ectonthe had been applicable
Oure0ectivetaxrateisprimarilydrivenby e0ectivetaxrate.
thetaxratesinthejurisdictionswherethe
Other applicable tax rates abroad -158 -8.1%
majorityofourbusinessisconducted,i.e.the .2 TheoperationsinRussiaandBelaruswere
Netherlands,SwedenandSwitzerland,and scaleddowninFY2with 2 theintentionto Exempt income -27 -1.4%

thenancial
1 performanceofthe!nter!KEA exitfromRussia.Thisledtoconsiderable Non-deductible expenses 20 1.0%
Groupcompaniesinthesejurisdictions. lossesinFY2and
2 anupwarde0ecton
(De)recognition of tax losses -14 -0.7%
thee0ectivetaxrate.Theremaining
Adjustment for prior periods -20 -1.0%
Thee0ectivetaxrateof!nter!KEAGroupin operationsinRussiacloseddownorwere
FY2decreased
)%8.51( 3 incomparisontoFY22 soldduringFY2which3 resultedina Changes in tax rates -2 -0.1%

but
)%7.32( wasinlinewiththee0ectivetax gaininFY2This
.3 gainshouldbeviewed Non-reclaimable withholding tax 13 0.7%
rateinFY2The . ) % 0 . 6 1 ( 1 highere0ectivetax incombinationwiththecostsalready Other -7 -0.4%
rateinFY2was 2 mainlyduetotwospeci1c recordedinFY2On.2 aggregate,the
circumstancesthatnolongerappliedinFY2: 3 closingdownoftheoperationsinRussia
andBelarusledtoalossfor!nter!KEA
.1 Thepro1tsinourSupplybusinesswere Group. All amounts are in million EUR
signi1cantlylowerinFY2due
2 tosharp
costincreasesinthesupplychain,which Thechartontherightreconciles!nter!KEA
weabsorbedresultinginalowergross Groupse0ectivetaxrateforFY2with 3 the
margin.AsourSupplybusinessisledby Dutchcorporatetaxrate. ) % 8 . 5 2 ( #

!KEASupplyAGinSwitzerland,asmaller
shareofthetotalpro1tof!nter!KEAGroup

6 | Inter IKEA Group Tax Report FY23

 Ourcountry-by-
country report

Ourcountry-by-countryreportonthenext
pageprovidesfurthertransparencyintoour
corporate income tax position in FY23 across
thejurisdictionswhereweoperate.This
reportfollowsthetemplatelaiddowninthe
EUDirectiveforpubliccountry-by-country
reportingDirective
( EU)
( .)10 2/1 02

Wehavealsoincludedacolumnforassets
inthecountry-by-countryreporttoprovide
additionalinsightintoourbusinessactivities
intheindividualjurisdictions.

Thebusinessactivitiesof!nter!KEAGroups
corebusinessesareledfromtheNetherlands
Franchise)
( Sweden
, Range)
( andSwitzerland
Supply)
( This
. isre2ectedinthecountry-
by-countryreportwhichshowsthatthe
largestshareofrevenues,assets,pro1tsand
corporate tax payments are concentrated in
theNetherlands,SwedenandSwitzerland.

Thesenancial
1 gures
1 arefurtherexplained
inthepagesfollowingthecountry-by-country
report.

7 | Inter IKEA Group Tax Report FY23

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8 | Inter IKEA Group Tax Report FY23 Thegures

1 inthistablearereportedunderDutchGenerallyAcceptedAccountingprinciples.Thesesameprinciplesarealsoappliedwhenpreparingthe All amounts are in thousand EUR
nancial
1 reportingincludedinthe!nter!KEAHoldingB.V.AnnualReportandthegures
1 reconcilewithgures
1 reportedthroughtheAnnualReport. (except employees)
Revenues
The Revenuescolumnshowsthetotal
revenuesforall!nter!KEAGroupcompanies.
Thisdi0ersfromtherevenuesreportedin
ourannualreportasitalsoincludesthe
intercompany revenues from transactions
withother!nter!KEAGroupcompanies.
The main sources of revenues for each of the
threecorebusinessesareasfollows:
• Franchisemainlygeneratesrevenuesfrom including
makingpartsofthe!KEAConceptavailable paidinFY2:3
e.
( g.to!KEAfranchiseesforafranchisefee
ofon%3 netsales)andoperatingthe!KEA
reference
% store&inDelft,theNetherlands.
These revenues are reported by Inter IKEA
SystemsB.V.intheNetherlands.
• Rangegeneratesrevenuesfrom
developingthe!KEArangeand!KEA
products.Theserevenuesaremainly
reportedby!KEAofSwedenABinSweden.
• Supplygeneratesrevenuesfromthesale
of!KEAproductsandcomponents.These
revenuesaremainlyreportedby!KEA
SupplyAGinSwitzerland.
9 | Inter IKEA Group Tax Report FY23
Profit Di0erencesbetween Tax accrued and Tax
The ProKt
columnshowsthesumofthe paidariseastheactualpaymentofcorporate
resultbeforeincometaxandismainly incometaxregularlytakesplacebefore
concentratedinthejurisdictionswhere orafterthenancial
1 yearinwhichthetax
theleadershipandcentralfunctionsofthe expensewasincurred.
corebusinessesarelocated,whicharethe
Netherlands,SwedenandSwitzerland. Employees
The Employeescolumnshowsthefull-time
Tax accrued and Tax paid equivalentFTE)
( numberofemployeesasan
ThecolumnsTax accrued and Tax paidinclude averageforthenancial
1 year.
thetotalamountofcorporateincometax
( withholdingtaxes)accruedand ForFY2the
,3 numberofemployeeswas
dividedacrosseachcorebusinessasfollows:
• Tax accruedre2ectsthecurrentcorporate
income tax expense recorded for the 3,083
taxablepro1tofFY2This
.3 amountis
di0erentfromthetotaltaxexpense 2,219
reportedinourannualreportasitdoes
19,452
notincludedeferredtaxesorcorrections 190
forprioryears.
• Tax paidrelatestocorporateincometax
paymentsmadeduringFY2This
.3 amount
matchesthetaxpaidinthecashow 2
statementofourannualreport.
Supply Range Franchise Other functions
FY23 full-time equivalent co-workers
per core business
Assets Accumulated earnings
The Assetscolumncontainsthebookvalueof The Accumulated earningscolumnincludes
ourassetsattheendofFY2This
.3 includes thesumoftheaccumulatedearningsof
intangible,tangibleandcurrentassets,butall!nter!KEAGroupentitiesresidentinthe
excludescashandcashequivalents.The relevantjurisdictionattheendofFY2.3
assetswiththehighestbookvalueare:

• IKEA brand
Allintellectualpropertyrightsrelatedto
the!KEAbrandareownedby!nter!KEA
SystemsB.V.intheNetherlands.Most
activitiesof!nter!KEASystemsB.V.are
centred around the protection and further
developmentofthe!KEAbrandandthe
!KEAConcept.

• Inventories
Themainassetsofthewholesale
companies are the inventories of IKEA
products.Thevastmajorityofthe
inventoriesaredirectlyownedby!KEA
SupplyAGbasedinSwitzerland.

10 | Inter IKEA Group Tax Report FY23

Ourtotaltax
contribution

Inter IKEA Group is subject to a number of Taxes collectedaretaxesweareobliged

taxes.Allthesetaxescombinedledtoatotal towithholdandremittoagovernment
tax contribution for Inter IKEA Group in FY23 of
onbehalfofanotherpersonoranother
EURmillion
230,2 EUR
( million
69 ,1 inFY2. ) 2 company.Thesetaxesarenotincurred
by!nter!KEAGroup,butwearerequired
Thechartontherightshowsabreakdownof tocollectthem.Thesetaxesareindirectly
!nter!KEAGroupstotaltaxcontributionper generatedbyourbusinessactivitiesand
typeoftax.!nthischartadistinctionismade are part of our indirect contribution to
betweenTaxes incurred and Taxes collected. governmenttaxrevenues,suchasvalue
addedtaxVAT)( andpayrolltax.
Taxes incurredaretaxesweareobligedto
payonourownbehalftoagovernmentor
toathirdpartythatcannotberecovered.
Corporate
Thesetaxeshaveanimpactonourpro1tand 299
income tax
322
areadirectcontributiontogovernmenttax
Customs 371
revenues.Thisincludescorporateincome
74
tax,customsdutiesandothertaxessuchas
Other taxes 29
environmentaltaxesandpropertytaxes. 62

VAT 918
467

Payrolltax 415
734

Taxes incurred FY23 Taxes collected FY23

Taxes incurred FY22 TaxescollectedFY22

FY23/FY22 total tax contribution by type of tax in million EUR

11 | Inter IKEA Group Tax Report FY23

For further information, please visit inter.IKEA.com

B.V.andmayinnowaybecopiedorreproducedwithouttheconsentof!nter!KEASystemsB.V.
!KEASystemsB.V.Allcopyrightsinthepicturesusedinthisdocumentareownedby!nter!KEASystems
©!nter!KEASystemsB.V.203. The!KEAlogoandthe!KEAwordmarkareregisteredtrademarksof!nter
Inter IKEA Group Inter IKEA Group Inter IKEA
Financial Summary Tax Report Holding B.V. Inter IKEA Holding B.V.
Annual Report
FY23 FY23 FY23
List of Subsidiaries
FY23

!nter!KEAGroupFinancialSummaryFY23 Inter IKEA Group Tax Report FY23 Inter IKEA Group !nter!KEAGroupList
AnnualReportFY23 of Subsidiaries FY23

© Inter IKEA Systems B.V. 2022

People
& Planet
Positive

IKEA Sustainability Strategy Published: June 2018. Updated: September 2022

IKEA Year in !KEASustainabilityReport

ReviewFY23 WillbereleasedinSanuary204