Tax strategy

In compliance with the UK legislative requirement, we publish our UK tax strategy.

Tax strategy

KLM has a branch office with the registered address being: Plesman House 2a Cains Lane, Bedfont, Middlesex TW14 9RL United Kingdom Koninklijke Luchtvaart Maatschappij N.V. (“KLM”) – UTR number: 6633013366 In addition, KLM owns as per 30 September 2017 the following UK subsidiaries:

  • KLM UK Engineering Limited (Norwich) – UTR number 5178002934 – 100% ownership
  • International Airline Services Limited (London) – UTR number 9178016598 – 100% ownership
  • KLM Cityhopper UK Limited (London) – UTR number: 9572903271 – 100% ownership

Hereinafter, KLM’s UK branch office and the subsidiaries jointly are referred to as the UK KLM Group.

Code of Conduct

The KLM Code of Conduct (the “Code”) contains an overview of the rules relating to KLM operating its businesses and to working with KLM. The Code is designated to set a conduct standard and to provide guidance to the members of the Supervisory Board of KLM, the Board of Managing Directors, the KLM executives and any and all of the KLM employees, including hired staff, in complying with ethical and legal obligations. The Code serves as an umbrella for the several policies and procedures within KLM that form an integral part of the Code.

Compliance with law

KLM is committed to operate its business in compliance with law. Employees are required to observe and comply with all applicable laws, rules and regulations, including internal rules and regulations. No employee is authorized to deviate from this requirement.

Attitude towards UK tax planning and tax risk

The UK KLM Group adopts a conservative approach to tax planning and will only be involved in tax planning to the extent that it supports commercial activities. The UK tax group claims relevant tax reliefs based on the Convention between the Government of the United Kingdom of Great Britain and Northern Ireland and the Kingdom of the Netherlands for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital gains or other reliefs made available by the UK Government. Where uncertainty over interpretation of tax laws arises, the UK KLM Group will consult with external advisors and HMRC, if necessary, in order to minimize uncertainty and risk. In addition, the UK KLM Group will inform and consult KLM’s Tax Department in the Netherlands. KLM’s Tax Department in the Netherlands reports directly to KLM’s Chief Financial Officer.

Approach towards its dealings with HMRC

The UK KLM Group has a policy towards HMRC to be transparent and pro-active in all interactions. The UK KLM Group always tries to maintain a good and open relationship, as well as clear communication, with HMRC. If and where appropriate and possible, the UK KLM Group will pro-actively disclose relevant information to HMRC in advance in respect of material tax events to ensure clarity, or volunteer on certain tax matters on a real time basis to minimize tax risk. When seeking clarity from HMRC, all relevant facts and circumstances of the situation will always be provided. It has been agreed with the Customer Relationship Manager of HMRC (Large Business – East Midlands Region) that each subsidiary and the KLM UK branch each will maintain its own relationship with HMRC due to the fact that the activities of these companies differ in such way that the appointment of a Senior Accounting officer (“SAO”) is not deemed to be efficient. The UK KLM Group considers this document to comply with the UK legislative requirement in paragraph 16(2) and paragraph 25(1), Schedule 19, Finance Act 2016.  Updated: November 2017