We see tax as a responsibility that contributes to socio-economic development, along with employment creation, use of local suppliers and other direct and indirect economic impacts. It is Ericsson’s policy to comply with both the spirit and the letter of all relevant tax regulations in each jurisdiction where business is conducted.
Ericsson does not engage in tax avoidance activities and pays taxes based on the business activities in each country. Ericsson does not engage in any tax activities that are not related to Ericsson’s business operations and do not have any economic substance.
It is our policy to pay the right amount of local taxes wherever we do business, based on a fair and sound assessment of the profit levels generated locally, supported by external benchmark studies. Transfer Prices between Ericsson companies shall be consistent with those that would otherwise be agreed by independent parties in the open market (an arm’s length standard).
Our Code of Business Ethics reflects the Ericsson Group´s commitment to conducting business responsibly, including being a responsible corporate citizen. It also contains rules supported by comprehensive processes, checks and due diligence procedures for all individuals, third parties and associated persons performing work for Ericsson to ensure compliance at all times with applicable laws, rules and regulations.
The following UK tax strategy covers the UK taxes as defined in paragraph 15(1) schedule 19 Finance Act 2016 which are relevant to the Ericsson UK companies.
Approach to risk management and governance arrangements in relation to UK taxation
Ericsson complies with tax rules and payment obligations throughout our global business operations. This is ensured through a robust and tightly controlled governance system handling tax accounting and compliance which is carried out by regional financial control units which integrate accounting and tax expertise within the newly formed Global Financial Excellence team. The Vonage business units are managed together through their own Enterprise led organisation. The new units are governed by Group Function Finance which is headed by the Chief Financial Officer. Within the Group Function Finance the functional responsibility for the Group Tax matters lies with the Head of Group Taxes.
There is a strong emphasis and focus on local legal entity governance and risk management to ensure close cooperation and coordination between Finance, Tax, Legal and Treasury functions in particular along with the other relevant management functions on a regular basis.
The Senior Accounting Officers appointed for each UK company monitor all relevant UK tax matters by establishing and reviewing the controls required to ensure that each Ericsson UK company has appropriate tax accounting arrangements in place and work closely with the UK Tax Manager.
Responsibility for the UK corporate income and indirect tax matters resides with the UK Tax Manager, who is assisted by corporate income tax and indirect tax specialists, and qualified external advisers as required. Global People Services handle the UK payroll related taxes and is also assisted by external advisers as required.
Attitude towards tax planning
It is our policy to pay the right amount of local taxes wherever we do business.
The functional responsibility for tax matters within the Ericsson Group lies within Group Taxes. Group tax strategy is focused on compliance with tax legislation and regulations in all countries where the Ericsson Group operates and on optimized management of taxes, while maintaining quality and keeping deadlines, to avoid unnecessary taxes and other charges.
The UK Tax Manager and UK Payroll Manager ensures that all global tax initiatives that impact the UK companies comply with UK tax legislation.
Level of risk in relation to UK taxation
Ericsson UK has a low appetite for tax risk and works towards achieving a high degree of certainty in its current and future tax liabilities.
We utilise tax reliefs and allowances available and according to UK legislation. The UK Group will use its best judgement in determining an appropriate course of action, using available reliefs and incentives where possible and liaising with HMRC where appropriate.
All transfer pricing arrangements will be consistent with the OECD Transfer Pricing Guidelines and in particular follow the arm’s length principle.
Approach towards dealings with HMRC
Ericsson UK seeks to comply with its tax filing, tax reporting and tax payment obligations. Our policy is to manage taxes with integrity, accuracy and transparency, while maintaining an open and honest relationship in all interactions with HMRC through regular communications with HMRC. The main responsibility for the relationship lies with the UK Tax Manager in conjunction with the UK Payroll Manager as required.
Ericsson UK companies in 2025
Ericsson Limited
Iconectiv UK Limited
Red Bee Media Limited
Red Bee Media Pension Plan Trustee Limited
Ericsson Enterprise Wireless Solutions UK Limited (Formerly Cradlepoint UK Limited)
Ericom Software (UK) Limited
Nexmo Limited
Nexmo World Services Limited
Vonage Business Limited
Vonage NVM Holdings Limited