Operating Responsibly

Tax Strategy and Governance

Temenos aims to act with integrity, honesty and transparency in tax matters and adhere to high standards of corporate governance.

Our Approach

Temenos is the global leader in banking software, with offices in 39 countries around the world.

Temenos seeks to comply with all applicable laws and regulations in the countries where we operate, acting with fairness, as a responsible global corporate citizen in compliance with applicable tax laws and regulations. In addition to corporate income taxes, we make substantial contributions by paying non-income based taxes, such as capital taxes, irrecoverable Valued Added Taxes, employer-related payroll taxes, and other local taxes as required by domestic tax laws.

This tax strategy applies to all Temenos group companies including all the UK legal entities within the Temenos group and is effective for the financial year ending 31 December 2023. The publication of this strategy is regarded as satisfying the requirements of UK law, Finance Act 2016 Schedule 19 Paragraph 16(2).

Tax Risk Management

Overall responsibility for tax risk management rests ultimately with the Chief Financial Officer (CFO). Issues related to tax are regularly discussed between the Head of Tax and CFO. Each year the tax department will present the tax strategy and key developments to the Audit Committee.

Temenos is also aware of its responsibilities under the UK Corporate Criminal Offence legislation and actively works to manage the risk of failing to prevent the facilitation of tax evasion.

Tax Planning

Temenos does not enter into any aggressive tax planning or support the use of artificial structures or tax havens that are established solely to avoid paying tax and have no business purpose or economic substance.

Temenos may utilise tax incentives (e.g. research and development credits) and also plan its business operations to achieve economic and tax efficiency, which are made available by the laws and regulations of a jurisdiction, provided they are aligned with its business or operational activities.

Temenos operates throughout the world. As a result, there are many transactions between Temenos Group companies. In line with internationally recognized rules for cross border transactions, the pricing of these transactions must reflect an arm’s length price. The pricing is driven by the activities undertaken and the value created in the countries.

Temenos supports the OECD initiatives on international tax matters, including on Base Erosion and Profit Shifting (BEPS) actions. Each year, Temenos submits its Group Country-by-Country Report to the relevant tax authorities.

Tax Risk

Temenos considers compliance with tax legislation as key to managing our tax risk. Temenos employs both regional and functional tax professionals that are experienced in identifying and managing tax risk. The internal tax team will seek the input of external advisors when appropriate. The approach is to ensure Temenos is compliant and understands its responsibilities with regard to tax.

Relationship With Tax Authorities

Temenos seeks to comply with all tax filing, tax reporting and tax payment obligations, in a spirit of cooperative compliance.

Temenos looks to maintain open and transparent relationships with the tax authorities in which we operate, including HM Revenue & Customs in the UK. This may involve disclosing and seeking to agree the treatment of a material transaction prior to the filing of tax returns.

From time to time, views may differ on the appropriate tax treatment. Where such circumstances arise, Temenos will work constructively and proactively with the tax authorities in question with a view to achieving an early resolution to any matters arising.