Approach to Taxation

ICICI Bank aims to act responsibly and with integrity in all tax matters. In alignment with its focus on ensuring a timely and comprehensive compliance with its tax obligations in India and in other countries, where it has a presence through its branches and representative offices, the Bank has adopted a comprehensive tax approach. The approach is driven by the principles of 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 related party transactions and adopting transparency and professionalism in its relationships with tax authorities.

Areas of Commitment and Focus:

Tax Governance

We ensure filing of tax returns and paying the amount of tax due in a timely manner through our team of qualified tax professionals. The Bank works closely with advisors on matters related to taxation, keeps updated on industry-specific issues and adoption of positions. The Bank also takes advice from external consultants before taking any position in case of any uncertainty on the treatment and/or interpretation of tax legislation, particularly in the case of significant transactions. The Bank reports all 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

The Bank ensures that intra-group transactions are based on the ‘arm’s-length’ principle and adhere to the relevant audit and documentation requirements. It also ensures compliance with respect to Country-by-Country reporting (CbCR) of key tax-related information including financial information and further ensures that such information is provided annually to the relevant tax authorities.

Relationship with Governments and Tax Authorities

The Bank is committed to maintaining a professional and transparent relationship with the tax authorities by providing appropriate responses to any enquiries. The Bank liaises with tax authorities through a dedicated tax department for this purpose. As part of its efforts to participate actively in the development of tax laws and policies, the Bank contributes to the representations regarding amendments to tax laws pertinent to banking business.

Ensuring Timely Tax Collection

The Bank recognises its role as a significant taxpayer in India. The Bank understands its responsibilities to deduct/collect tax at source from counterparties (including customers and employees) and deposit such tax into the government treasury in a timely manner.

The Bank offers taxpayers a range of digital channels, including internet banking, mobile applications, and debit cards, ensuring a seamless tax payment experience. Additionally, the Bank has 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. In collaboration with government authorities, the Bank continues to expand access by enabling payments via Unified Payments Interface (UPI), credit cards, debit cards and net banking, even for customers who may not hold an account with the Bank.