As a responsible corporate citizen, ICICI Bank conducts its business in a
sustainable and compliant manner including adherence to taxation norms. It is committed to
ensure a timely and comprehensive compliance of its tax obligations.
As the Bank
offers a wide range of banking and financial services to its customers, it has numerous
direct and indirect tax compliance obligations, both in India as well as in other countries,
where it has a presence through its overseas branches, representative offices and
subsidiaries.
The direct taxes primarily include income tax. The Bank is a tax
resident of India and hence it offers tax on its global income in India. It does so, after
taking credit for the taxes paid in the offshore jurisdictions, as per the provisions of
Indian Income Tax law and relevant Double Taxation Avoidance Agreements. The indirect taxes
mainly include Goods and Service Tax (GST) and Value Added Tax (VAT), for which, the Bank is
duly registered in all relevant jurisdictions in India and offshore geographies for payment
of indirect taxes.
The Bank is a large tax payer in India, with an income tax outgo of
R45,047.6 million and a gross GST liability of R45,055.6 million in FY2021.
To
meet its tax payment obligations in a timely manner, the Bank has built commensurate
capabilities. It includes, a) closely monitoring the existing tax laws and amendments,
b) building capabilities in internal groups to respond to regulatory requirements, c)
creation of framework of processes, systems and internal controls to mitigate
operational risks in tax compliance.
In continuance with the Bank’s drive to
provide innovative, digital and customer friendly solutions to customers, the Bank has
undertaken various initiatives on the tax collection front. The Bank is offering various
digital channels for the ease of taxpayers (individual/non-individual) through internet
banking, mobile applications and debit cards for payment of taxes. The Bank has also
developed innovative solutions for non-individuals, like payments through Host to Host
(H2H), payments through Application Programming Interface (APIs), bulk upload
functionality, simplified GST payments and many more. Further, the Bank is also
collaborating with relevant authorities to offer channels like Unified Payments
Interface (UPI), Credit Card, Debit Card and Net Banking for tax payers who do not have
account with the Bank.
The Bank is a large tax payer in India, with an income tax outgo of ₹ 45,047.6 million and a gross GST liability of ₹45,055.6 million in FY2021.