Tax Strategy

HUGO BOSS firmly believes that paying tax is of central importance to our global economic and social relationships. By paying our taxes, we assume responsibility for our actions in every country in which we operate. Our tax payments are an important contribution to the expansion and maintenance of infrastructure and social cohesion in every one of these countries, as well as representing a cornerstone in our commitment to conduct and develop our business in a sustainable, fair and cooperative manner across the world.

Despite the fact that there is not always absolute certainty regarding tax in international business transactions, which leaves some space for interpretation, HUGO BOSS recognizes its clear responsibility in respect of local legislation. This forms the basis for the responsible and dutiful treatment of tax matters and is in line with the company’s ambition to comply to all applicable laws and regulations. For this reason, tax compliance for HUGO BOSS is more than gearing our decision-making processes to the exact wording of the law. HUGO BOSS commits to fully comply with the spirit as well as the letter of the tax laws and regulations in the countries in which it operates.

For this purpose, HUGO BOSS has drawn up the following guiding principles in the form of a tax strategy aimed at ensuring that legal obligations are met throughout the Group as a whole, as well as aligning it with our economic activities. The following tax strategy was developed by the Group Tax Department and approved by the management board and the Audit Committee.

Tax Strategy 2023

Tax reconciliation

(In EUR thousand) 2023
Earnings before taxes 356,889
Anticipated income tax 105,431
Tax effects of permanent items 219
Tax rate-related deviation (14,634)
        thereof effects of changes in tax rates (176)
        thereof adjustments of tax amount to diverging local tax rate (14,458)
Tax refund/tax arrears from prior years (6,682)
Deferred tax effects from prior years 3,707
Valuation allowance on deferred tax assets (1,887)
Tax effects from distributable profit of subsidiaries 0
Other deviations 945
Income tax expenditure reported 87,099
Income tax burden 24%

Breakdown of income tax accrued and income taxes paid by country

HUGO BOSS looks back on a successful business performance in fiscal year 2023, recording strong top- and bottom-line improvements. The successful execution of several brand, product, and distribution initiatives as part of “CLAIM 5” further spurred the operational and financial performance in 2023. This is also reflected in the corresponding increase in income tax expenses.

As already in the previous years, Germany, as one of the core markets of HUGO BOSS, had the highest revenues1  and current income tax expenses (excluding aperiodic effects). In this context, the current tax expenses only reflect operations in the current year and do not include deferred taxes or provisions for uncertain tax liabilities. In addition to current tax payments for the fiscal year, tax payments include tax payments for previous periods. As the United States, Great Britain, and mainland China are among the core markets of HUGO BOSS, this is also reflected in their share of revenue1 as well as income tax accrued and income taxes paid. The distribution of revenue1 and current income taxes among the other countries corresponds to the respective course of business.

Main countries of company’s operations Sales
20231
Earnings before tax
20231,2
Income tax accrued
20231
Income tax paid
20231
Number of Employees
2023
Primary Activities
  % in EUR million % in EUR million % in EUR million % in EUR million % FTE  
Germany 30 2,213.4 8 24.8 37 24.7 30 21.3 21 3,868 Management activities, supply unit, development and design, production, procurement, sales 
United States 12 869.1 16 45.9 8 5.4 12 8.2 8 1,584 Sales, support services
Great Britain 6 450.8 0 0.4 5 3.2 14 9.8 5 925 Sales, support services
China 5 331.4 3 7.9 1 0.4 5 3.8 7 1,383 Sales, support services
Switzerland 16 1,204.6 29 84.5 7 4.6 3 2.0 3 591 Supply unit, Trademark unit, development and design, production, procurement, sales 
Turkey 4 259.9 5 13.3 4 2.3 5 3.5 27 5,148 Production, sales
Italy 2 110.5 1 4.2 2 1.4 1 0.4 2 358 Production, sales
United Arab Emirates 3 213.1 8 24.9 0 0.0 0 0.0 1 270 Sales
Netherlands 2 169.9 2 7.2 6 3.8 5 3.8 1 260 Sales, Finance Unit 
France 3 243.8 5 14.3 5 3.6 9 6.3 3 622 Sales
Mexico 2 162.0 1 3.8 1 0.8 4 2.9 2 326 Sales
Spain 2 138.3 4 10.7 4 3.0 4 2.6 2 407 Sales
Canada 2 121.6 3 9.3 2 1.6 1 1.0 2 343 Sales
Japan 1 88.8 2 6.4 4 2.4 1 0.7 2 299 Sales
Austria 1 78.7 0 -0.2 2 1.1 1 0.9 1 117 Sales
Brasil 1 62.5 3 9.8 4 2.7 4 2.7 2 338 Sales
Other countries 8 611.2 10 26.7 8 5.0 1 0.9 11 1,900 Sales
Result 100 7,329.6 100 293.9 100 66.0 100 70.8 100 18,738  

1 Figures are based on the separate financial statements of the respective subsidiaries included in the consolidated financial statements and therefore do not correspond in total to the consolidated figures in the 2023 Annual Report.
2 Intercompany dividends and intercompany profit assumptions were eliminated from earnings before tax.

Further information

Declaration of Compliance

The Managing Board and Supervisory Board dealt with the fulfillment of the specifications of the German Corporate Governance Code (DCGK) at length in fiscal year 2018, and have provided a Declaration of Compliance as the result.

Corporate governance

Listed stock corporations are obligated to provide a corporate governance statement in accordance with § 289a of the German Commercial Code (HGB). In addition to the Declaration of Compliance, this includes information on corporate governance practices and a description of the work method of the Managing Board and Supervisory Board.

Compensation

Here, you can find information about the compensation of the Managing Board and Supervisory Board as published in the Annual Report of the prior fiscal year.

Risk Management

HUGO BOSS views the responsible handling of risks as an important part of good corporate governance. This enables risks to be detected and assessed at an early stage and risk positions to be controlled through corresponding measures.

Data Protection

For HUGO BOSS protecting personal data is more than just a legal obligation. We handle personal data from customers, employees, business partners, shareholders and investors responsibly and in a transparent manner. For us this is the basis for every trustful collaboration.

Information Security

In times of digitalization, information security is an important part of the HUGO BOSS group strategy. Protecting our digital business processes is crucial for our success.

Strategy

With its 2025 growth strategy "CLAIM 5", HUGO BOSS is fully committed to strongly accelerate top-line growth, claim its position in the consumers’ minds, and win market share for its strong brands BOSS and HUGO.

Articles of Association & Bylaws

Here, you can download the Articles of Association and the Bylaws of the Managing and Supervisory Boards of HUGO BOSS AG as PDF files.