Approach to Taxation

The Bank aims to act responsibly and with integrity in all tax matters. The Bank’s tax approach consists of ensuring a timely and comprehensive compliance of its tax obligations in India as well as in other countries where it has a presence through its branches and representative offices. Some of the key principles of our tax strategy includes ensuring compliance with applicable tax laws in all material aspects by filing tax returns and paying taxes in a timely manner, supporting anti-tax avoidance rules, assessing the implications of transfer pricing regulations in dealing with related party transactions and adopting transparency and professionalism in our relationships with tax authorities. We are continuously working towards and are committed to:

Tax Governance

We ensure filing tax returns and paying the amount of tax due in a timely manner through our team of qualified tax professionals. We routinely engage with advisors on tax matters, and updates on industry-specific issues and positions being adopted. For any significant transactions, where there is uncertainty on the treatment of tax and interpretation of legislation, we seek advice from external consultants before taking any position. We report material tax disputes to the Audit Committee of the Board for its consideration and further reporting to the Board.

Transfer Pricing and Country-by-Country Reporting

We ensure that intra-group transactions are based on the well-accepted ‘arm’s-length’ principle and in compliance with audit and documentation requirements. ICICI Bank, being the parent entity, ensures compliance with respect to Country-by-Country reporting (CbCR) containing the key tax related information including financial information and that the information is provided annually to the relevant tax authorities.

Relationship with Governments and Tax Authorities

We seek to maintain professional and transparent relationship with the tax authorities by providing appropriate responses to enquiries made. For this purpose, the liaising with tax authorities is done through a dedicated tax department. We also endeavour to participate in the development of tax laws and policies by contributing to the representations made for amendments in the tax laws which could have an impact on the business of the Bank.

Facilitating Tax Collection

We understand the benefits of a well-functioning tax system that facilitates investments in socio-economic development of a country. Our philosophy of promoting inclusive growth is a value driver for responsible tax conduct. We are a significant taxpayer in India. We understand our responsibilities to deduct/collect tax at source from our customers and vendors and deposit such tax into the government treasury in a timely manner. We offer taxpayers a range of digital channels, including internet banking, mobile applications, and debit cards, ensuring a seamless tax payment experience. Additionally, we have developed advanced solutions for non-individual taxpayers, such as tax payments through Application Programming Interface (APIs), Host-to-Host (H2H) connections, and simplified tax payment systems. We also collaborate with relevant authorities to extend payment options, including Unified Payments Interface (UPI), credit cards, debit cards, and net banking, for taxpayers, including those who may not be an account holder in the Bank.