Country by country data Note 1 - Basis of preparation Payroll taxes paid: These are taxes paid by us, based on government social security policies in each country and, for example, in the UK The table provides the following information for Barclays in 2016: represent employer’s national insurance contributions. They do not Country: In most cases, we have determined which country to report represent income tax on payments to our employees or employees’ activity under by looking at country of tax residence. Where activities national insurance contributions which are taxes collected but not are conducted by entities that are not themselves subject to tax (for paid by us. example certain partnerships), then we have considered other factors VAT paid: This includes VAT and other consumption taxes (including such as the location of management and employees, the jurisdiction goods and services tax, consumption tax and US Sales and Use Taxes). in which the majority of revenues are generated, and the country of TheseareirrecoverableValueAddedTaxfigures.Unlikemanyother establishment of the entity’s parent. In these cases it is possible that businesses,financialservicesbusinessesareonlyabletoreclaimasmall taxispaidinadifferentcountrytotheonewhereprofits,uponwhich proportionoftheVATtheyincur,makingVATasignificantpartofourtax the tax is paid, are reported. contribution. Not all countries have a VAT system which is why there are Commentary: We have explained the nature of our activities in each no entries against some countries within the table. These numbers do country,andhaveclassifiedouractivitiesaspersonalandcorporate not include any VAT charged to customers on Barclays’ product base and banking, investment banking, Africa banking and Barclaycard, primarily collected on behalf of tax authorities. being credit card and payment processing. That disclosure is included Bank levy paid: Bank levy is a tax paid to the UK government on our within the commentary column in the table above together with our global balance sheet as we are a UK headquartered bank. It is a tax explanation of any matters of interest. charged on the funding we raise to support our businesses globally. Turnover: Turnover gives an indication of the size of our business in As with corporation tax the bank levy is paid across multiple years and each country, and we have ordered the table in descending order. therefore the tax paid of £391m in 2016 should not be expected to Turnover includes net interest income, net fee and commission income, equate to the accounting accrual in 2016 of £475m, which includes net trading income, net investment income, net premiums from both the bank levy charge on the face of the income statement as insurancecontractsandnetclaimsandbenefitsincurredoninsurance well as bank levy that relates to the Barclays Africa disposal group. contracts. Some of the turnover numbers need to be treated with care Other: Other taxes are the material property taxes that Barclays paid astechnicalaccountingrequirementsinthewaythesefiguresare in 2016 and include, for example, taxes on the property we use in our preparedmeanthereisanelementofdoublecounting.Profitsgenerated business such as our network of high street branches. in Canada and then paid to the UK as a dividend for example, will be Public subsidies received: Barclays received £2m from the Israeli countedwithinboththeCanadaandUKfigures.Theseadjustments, government in relation to IT development. called intra-group eliminations, are broken down by type at the end of the table and total around £5.1bn for 2016 in relation to turnover. Average number of employees: The number of employees has been Profit/(loss) before tax: Thesenumbersareaccountingprofits.Aswith calculated as the average number of employees, on a monthly full-time theturnoverfigures,thesenumbersincludesomedoublecounting equivalent basis, who were permanently employed by Barclays PLC or which is reconciled at the bottom of the table. Total intra-group one of its subsidiaries during the relevant period. An average of the eliminationsfortheprofit/(loss)beforetaxcolumnarearound£3bn. number of full-time equivalent employees at the end of each calendar ThemajorityoftheadjustingfiguresreportedrelatetotheUK. month has been calculated. Contractors, agency staff, and staff on extended leave, such as maternity leave, are excluded. Total tax paid: This column shows the total tax Barclays actually paid in Intra-group eliminations: These include adjustments that relate each country in 2016. The following columns break this total down into principally to transactions between Barclays businesses in different its constituent parts. Most of the taxes paid in any given year will not countries which are included within the individual country turnover, relatedirectlytotheprofitsearnedinthatyear.Forexample,banklevyis but are then eliminated in determining the overall Group results to avoid a tax on the amount and way we fund ourselves and is paid regardless double counting. Intra-group eliminations include dividend payments, ofwhetherornotwemakeanyprofit. income from intra-group transfers of assets, and income arising from Corporation tax paid: This column records corporation tax actually hedging transactions that occur at a consolidated Barclays Group level paid in each country in 2016. Corporation tax payable in any given year rather than an individual entity level. rarelyrelatesdirectlytotheprofitsearnedinthesame12months.This The comparable information for 2015 can be found on our isbecausetaxonprofitsispaidacrossmultipleyears,andtaxable website at home.barclays/citizenship/reports-and- profitsarecalculatedasprescribedbytaxlawwhichusuallyresultsin publications/country-snapshot.html differencesbetweenaccountingandtaxableprofits.Thismeansit is possible that relatively high corporation tax can be paid when accountingprofitsarelowandvice-versa.Theamountoftaxpaidshown inthefinancialstatementsalsoincludeswithholdingtaxes.Withholding taxes comprise the tax charged on dividends or other income received, which is typically paid at the point of a distribution from one country to another. We have kept these amounts separate from corporation tax paid by country in the table above.  BarclaysPLCCountrySnapshot2016 • 16