Tax responsibilities and payments
NatWest Group is committed to the responsible management of our worldwide tax affairs including a compliant approach to tax law in a transparent manner
The approach we take to our tax affairs and management of tax risk can be found in our Tax Strategy here:
We adopt the following approach in relation to our tax responsibilities:
- We are committed to the responsible management of our tax affairs in line with our purpose-led strategy.
- We take a compliant approach and seek to pay the right amount of tax in the jurisdictions in which we operate, complete and submit accurate tax returns and pay tax due within the timeframes set by legislation.
- We do not establish businesses in any jurisdiction with the sole or main purpose of gaining a tax advantage or to divert profits from higher tax rate jurisdictions and we operate policies to ensure that there is no artificial diversion of profits between high and low tax countries.
- We require all intra-group transactions to be priced on an arm’s length basis in line with internationally accepted transfer pricing standards and local tax laws.
- We are committed to improving tax transparency and comply with global initiatives in this regard.
- We are transparent in our interaction with tax authorities. In the UK we have signed up to the UK Government’s Code of Practice on Taxation for Banks (‘the Code of Practice’) which commits us to obeying the spirit, as well as the letter of the law, and to maintaining an honest and open dialogue with HM Revenue & Customs. All parts of the Bank worldwide are expected to follow the Code of Practice.
- We have a low appetite for tax risk and aim to minimise the level of tax risk arising from our operations as far as is reasonably possible.
- Our tax specialists review new products, transactions or business proposals through the Group’s risk governed sign-off processes. Our tax specialists aim to ensure that we comply with tax law and practice, that transactions and business proposals are within tax risk appetite, and that we consult with tax authorities and/or external advisors where necessary.
- We aim to operate in a tax efficient manner by claiming tax exemptions, reliefs, and incentives in line with the relevant legislation and its intended policy objectives and which are consistent with the operational objectives and economic substance of our business.
- We will only undertake tax planning which supports genuine economic and commercial activity, is based on reasonable interpretations of applicable law and is compliant with the Code of Practice. Any tax planning proposed is subject to a robust review and approval process.
- We do not promote products to our customers which we consider to be inconsistent with the spirit of the law.
- Our Financial Crime Statement states our lack of tolerance for any activity relating to the criminal offence of tax evasion and we are committed to preventing the facilitation of tax evasion.
Tax payments in 2021
These charts show the different taxes we paid globally and in the UK in 2021 as well as the taxes paid analysed by geographical region.
Which taxes do we pay in the UK?
Over recent years we have reduced our operations overseas and have increasingly focused on our banking activities in the UK. As can be seen from the charts above the majority of our taxes are paid to the UK Tax Authorities. We set out below more information on the taxes that we paid in the UK during 2021, which are used by the Government to support spending for the benefit of our wider society.
Global Corporate Income Tax Payments
- Our global corporate income tax payments by jurisdiction during 2021 and 2020 are disclosed in our County by Country report which can be found on pages 403 to 405 of our 2021 Annual Report and Accounts (PDF 13MB).
- More detail on our global operations in low tax jurisdictions can be found on page 46 of the 2021 ESG Supplement (PDF 1.5MB).
- For more detail on corporate income tax payments made by Ulster Bank Ireland Designated Activity Company in 2021 and our historic country by country reports visit the downloads section.