Tax Strategy
Show content of Our purpose
Deutsche Bank has been serving clients for over 150 years. They are at the centre of everything we do. We are dedicated to our clients’ lasting success and financial security at home and abroad.
As the leading bank in Germany with strong European roots and a global network offering a comprehensive product suite, we aim to become the bank of choice for clients in all financial matters. We aspire to be the best we can be as we serve our clients and drive sustained growth for all our stakeholders. We strive to ensure that we conduct ourselves ethically, with integrity and in accordance with the laws and regulations that apply to us worldwide, as well as Deutsche Bank’s policies and procedures.
To deliver this, we want to foster an environment that is open and diverse, where staff opinions and speaking up are valued, and where our employees’ and the bank’s success is built on respect, collaboration and teamwork in serving our clients, stakeholders and communities.
In keeping with this purpose, we apply the principles set out in this document in the management of our tax affairs. These tax principles, which have been embedded in the bank’s control framework for a number of years, have been approved by our Management Board and apply to all our businesses and group entities.
The key principles are:
- We undertake our tax affairs on a basis which generates sustainable value while meeting applicable legal and regulatory tax requirements.
- We give due regard to the intent and spirit of tax laws, the social context within which the bank operates, and the bank’s standing and reputation with the public, tax administrations, regulators, and political representatives.
Show content of Approach to tax risk management and governance
We manage our tax affairs in a way which aims to ensure that the tax consequences of business operations are appropriately aligned with the economic, regulatory and commercial consequences of those business operations, with due regard being given to the potential perspective of the relevant tax authorities.
In conducting our business affairs, setting up and structuring our business operations and commercial activities, we consider – among other factors – the tax requirements of the respective jurisdictions in which we operate, with a view to generating sustainable value to Deutsche Bank and its shareholders. In this context we may seek to avail ourselves of tax benefits and beneficial tax rates available under those tax laws. Uncommercial artificial steps for the purpose of obtaining tax benefits should not be undertaken. In addition, we do not endorse confidentiality arrangements which seek to preclude disclosure or reporting to tax authorities nor do we endorse success fee arrangements determined by the amount or existence of tax benefits.
Our in-house Group Tax function is an independent risk and control function separate to our business divisions and we employ skilled professionals to ensure that our position with respect to the bank’s own tax matters is robust. In appropriate situations our internal experts may take specialist external tax advice.
Show content of Attitude towards tax planning
We manage our tax affairs in a way which aims to ensure that the tax consequences of business operations are appropriately aligned with the economic, regulatory and commercial consequences of those business operations, with due regard being given to the potential perspective of the relevant tax authorities.
In conducting our business affairs, setting up and structuring our business operations and commercial activities, we consider – among other factors – the tax requirements of the respective jurisdictions in which we operate, with a view to generating sustainable value to Deutsche Bank and its shareholders. In this context we may seek to avail ourselves of tax benefits and beneficial tax rates available under those tax laws. Uncommercial artificial steps for the purpose of obtaining tax benefits should not be undertaken. In addition, we do not endorse confidentiality arrangements which seek to preclude disclosure or reporting to tax authorities nor do we endorse success fee arrangements determined by the amount or existence of tax benefits.
Our in-house Group Tax function is an independent risk and control function separate to our business divisions and we employ skilled professionals to ensure that our position with respect to the bank’s own tax matters is robust. In appropriate situations our internal experts may take specialist external tax advice.
Show content of Level of risk
Our business is subject to various risks, including tax-related risks. We seek to understand and mitigate these risks where possible. A number of tax-related risks are an inherent consequence of the scale and diversity of our business activities and the international nature of our business. This is exacerbated by the growing complexity of international tax laws and divergent approach of national tax authorities in various instances.
In accordance with our principles, we operate a control framework and governance to ensure that in all material aspects we are compliant with applicable tax laws, we file accurate tax returns, and we pay the amount of tax due.
Show content of Relationships with tax authorities
We aim for our dealings with tax authorities to be undertaken in a proactive, transparent, professional, courteous and timely manner and seek to develop and foster good working relationships with tax authorities.
Show content of Preventing tax evasion
Tax evasion, which is a financial crime, is illegal. Our policies strictly prohibit aiding or abetting or being involved in tax evasion.
We advocate the development of sound regulations and aspire to refine internal processes, procedures and controls to combat financial crime, including tax evasion and facilitation of tax evasion, and we do not endorse any actions that seek to undermine tax reporting of financial account information under applicable legislation, such as the Common Reporting Standard (CRS) or the Foreign Account Tax Compliance Act (FATCA). These requirements along with other existing internal processes, procedures and controls are intended to prevent our bank from committing or facilitating – intentionally or negligently – criminal offences.
We are prepared to discontinue, and have discontinued, relationships with clients and other third parties in order to safeguard our bank against the risk of committing or facilitating tax evasion, as well as the risk of other forms of financial crime.
We consider that the above statement complies with Deutsche Bank AG’s obligations under paragraph 16(2) of schedule 19 of the UK Finance Act 2016 to publish a tax strategy for 2025.