Economic Contribution
Why this topic matters to UOB
UOB has a network of branches and offices that extends across 19 countries and territories. The manner in which our economic value is distributed has significant impact on the economy and society. Our economic contributions include payments to stakeholders such as our colleagues, suppliers, investors, authorities and local communities. In 2019, we distributed $7.6 billion in payments that flowed to these stakeholders.
How we approach this topic
We contribute to the wider economy by creating jobs for employees, sourcing from suppliers of products and services, supporting local communities, promoting inclusive financing, and paying taxes to governments and dividends to shareholders. To create long-term value for all our stakeholders, we have frameworks, policies, guidelines and procedures in place to ensure that we remain responsible and disciplined in how we drive growth.
Our targets
  • Maintain zero material cases of non-compliance with regard to tax management
  • Maintain local procurement spend above 85 per cent to support local suppliers
  • Ensure local staff representation remains above 90 per cent
Our performance in 2019
In 2019, we generated total income of $10 billion, of which we distributed $2.7 billion in employee compensation and benefits and accrued
$813 million in income tax to governments. There were no material instances of non-compliance with regard to tax management.

From profit after tax of $4 billion, we distributed dividends of $2 billion to shareholders.

Across our network spanning 19 countries and territories, we created livelihoods for more than 26,000 people, with local employee representation of 94.6 per cent, and invested $31.1 million in employee training.

We made monetary contributions of more than $5.4 million to the community. UOB also supported local businesses and helped create jobs through the goods and services we bought from more than 10,000 suppliers in our seven key markets, of which local suppliers accounted for 93.8 per cent of our total purchases of more than $1.8 billion.
How we approach tax management
UOB is committed to complying with applicable tax laws and regulations across the countries and territories in which we operate. We file our tax returns accurately and in a timely manner and fulfil our tax obligations approximately.
Approach to tax risk management and governance
UOB takes a low tolerance approach towards tax risk. Tax risk is managed through the Tax Risk Management and Governance Framework which is based on the following principles:
  • Undertake transactions which are grounded in commercial realities;
  • Consistently consider tax implications before implementing our business plans;
  • File Our tax returns accurately and in a timely manner, and fulfil our tax obligations appropriately;
  • Employ experienced and qualified in-house tax professionals; and
  • Seek professional advice from third-party advisers and consult with tax authorities on transactions with significant tax uncertainty.
Approach to Base Erosion and Profit Shifting
Base Erosion and Profit Shifting (BEPS) refers to tax planning strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations. Singapore is part of the BEPS Project, led by the Organisation for Economic Co-operation and Development (OECD), to tackle BEPS issues across countries and jurisdictions in a coordinated and comprehensive manner.

UOB supports the BEPS principle that profits should be taxed where substantive economic activities generating the profits are performed and where value is created. UOB has adopted the internationally-agreed arm’s length principle for the determination of prices for transactions between related parties.
Risk-focused Organisational Culture
Responsible Financing
Climate Change Transition and Opportunities
Supporting Customers in Sustainable Development