Taxation

ING pays taxes at the normal rates in the countries where we are active. ING’s (weighted) average global effective tax rate for the last three years amounts to 29.1%. We don’t have any entities in offshore jurisdictions (‘tax havens’) to reduce our total tax bill. For the definition of offshore jurisdiction, ING uses the following sources: the EU black list of non-cooperative jurisdictions; the OECD (Organisation for Economic Co-operation and Development) list of jurisdictions committed to improving transparency and establishing effective exchange of information in tax matters; and, the Dutch Ministry of Finance’s list of low-tax states and non-cooperative jurisdictions for tax purposes.

We don’t provide customers with tax advice, and it is our policy that we don’t facilitate tax evasion and aggressive tax avoidance by customers.

We are mindful that every aspect of our business, including our approach to tax, has an impact on society. ING’s tax principles clarify our views on responsible tax behaviour.

The tax principles we live by are based on ING’s values with respect to integrity, honesty, prudency and responsibility. These values are the main drivers for our relationship with tax authorities and our standing practice to be transparent about our tax approach. ING also engages with various stakeholders, like (tax) authorities, non-governmental organisations, customers and internal stakeholders to receive insight into what stakeholders think is important for a responsible taxpayer like ING. As part of this process ING participates in tax working groups of the Confederation of Netherlands Industry and Employers (VNO-NCW) and the Dutch Banking Association (NVB). Through these working groups but also separately ING provides input for public consultations by Governments, whilst always recognizing and respecting the responsibilities governments have towards fair and effective fiscal policies.

Pursuant to the ING’s internal procedures and in line with the Dutch Corporate Governance Code, the Supervisory Board (SB) annually reviews, assesses and forms its opinion on ING’s Global Tax Policy. The policy aims to ensure that in dealing with taxes all employees act in accordance with applicable tax laws and regulations, the ING values and the ING tax principles. The policy addresses ING-wide critical and material risks related to taxes. Furthermore, relevant tax developments are discussed with the SB. ING’s Management Board Banking (MBB) is involved in the preparation for this session with the SB in which it participates.

The SB as well as the MBB follow a program of permanent education which includes a dedicated training on taxation.

The ING tax principles are applicable worldwide. Our employees must act with integrity and adhere to ING’s values when managing tax affairs. Employees are encouraged and protected under ING’s whistleblower policy to report behaviour that is unethical, illegal or goes against the values of our Orange Code and thus also against the ING tax principles.

It’s important for us to keep our employees up to date and make sure they consistently make the correct decisions in line with our tax principles. One way we do this is to have a training program in place in which the latest developments on tax integrity and tax risk management are monitored and shared on a continuous basis throughout the organisation. The training program makes a distinction between generic training and tailored training for specific audiences. ING Tax as subject matter expert provides input for the program.

ING Tax has regular meetings to discuss developments in national and international tax laws, regulations, jurisprudence as well as other relevant topics. For these meetings external tax experts may provide input.