First published in 1943, Our Credo stipulates that paying taxes is our responsibility to the communities in which we live and work. Johnson & Johnson is committed to paying our fair share of taxes.61
Our tax footprint evolves over time and reflects our healthcare activities and investments, including in research and development and manufacturing. What has not changed or wavered is our commitment to good corporate citizenship, which we demonstrate through sustainable values and behaviors relating to tax governance, compliance, planning, risk management, relationship with governmental authorities and transparency, which are more fully described in our Johnson & Johnson Tax Policy. This Tax Policy was updated in 2022 to provide greater transparency regarding our tax governance, compliance, tax planning and incentives.
In 2022, Johnson & Johnson contributed approximately $13.7 billion in taxes and fees to governments and economies around the world. This Total Tax Contribution is made up of two components: Total Taxes Borne by the Company and Total Taxes Collected. Taxes Borne are a direct cost to the Company, whereas Taxes Collected are collected from customers and employees on behalf of governments and ultimately remitted to them.
Our intent is to provide a comprehensive view of total taxes paid around the world. Corporate Income Tax represents payments in all markets in which we operate and is the amount reported as Income Taxes Paid in the 2022 Annual Report. Other taxes shown aggregate the Company’s data from 22 major markets that represent the vast majority of our revenues. We aspire to include all markets in future years.
2022 Tax Contribution (Billions) |
Taxes Borne |
Taxes Collected |
||
Corporate income tax |
$5.2‡ |
— |
||
Payroll & social insurance taxes |
$1.6‡ |
$4.9‡ |
||
Sales/use & other taxes |
$0.9‡ |
$1.1‡ |
||
Total |
$7.7‡ |
$6.0‡ |
||
Total tax contribution |
$13.7‡ |
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|
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Total Taxes Borne
In 2022, Johnson & Johnson bore $7.7 billion in taxes around the world. The taxes include corporate income taxes, the Company’s share of payroll and social insurance taxes and the Company’s share of sales and other taxes. Sales taxes include sales, use and non-recoverable value-added tax. Other taxes are primarily comprised of customs and other duties such as local taxes and special fees related to the pharmaceutical industry.
Total Taxes Collected
Additionally, in 2022 Johnson & Johnson collected $6.0 billion related to the commerce the Company generates. These collections were in the form of payroll and social insurance taxes from approximately 153,700 employees across the world, sales and use taxes and value-added taxes. These taxes are collected on behalf of governments from employees, customers and other business partners. Taxes Collected are an important part of the measure of the contribution made by Johnson & Johnson through job creation and business activities in the many countries in which we operate.
61 The tax information contained in this section is intended to provide the reader with an overview of all taxes contributed by Johnson & Johnson, and not just income taxes. It should be read in conjunction with the Company’s tax information filed with the U.S. Securities and Exchange Commission (SEC), including in the most recently filed Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. This tax information is supplemental to, and not a substitute for, the information reported in the Company’s SEC filings.
