Deutsche Bank Governance and operations Non-Financial Report 2022 Tax Further details on the bank’s international operations are provided in Deutsche Bank’s 2022 Annual Report, which discloses the income tax expense or benefit in the jurisdictions in which the bank operates (see Annual report 2022, Note 43 – Country by country reporting). For information on the domicile of the companies, names and their primary activities please refer to the shareholdings list (see Annual Report 2022, Note 44 – Shareholdings). The geographical location of subsidiaries and branches considers the country of incorporation or residence. To enhance the understanding of the Country by Country reporting the following explanatory information is provided. The Country-by-Country information reported is derived from the IFRS Group accounts of Deutsche Bank. It is, however, not directly reconcilable to other financial information in the Annual Report because of specific guidance published by the Bundesbank on December 16, 2014, which includes the requirement to present the country information prior to the elimination of cross-border intragroup transactions. In line with this requirement, only intragroup transactions within the same country are eliminated. As an example, the dividend income received by a group entity in Country X from a subsidiary in Country Y is not included in the IFRS Group accounts, as these are eliminated in consolidation. However, they are included in and reported in the results of Country X in the Country-by-Country reporting. As a matter of principle such intra-group dividend income is generally tax-exempt in most jurisdictions to avoid double or multiple layers of taxation. Accordingly, these specific reporting requirements can have a significant impact on the jurisdictional effective tax rate shown in the Country-by-Country reporting, which may differ from the country’s statutory tax rate. Moreover, the disclosed income tax expense or benefit may also reflect various other adjustments required by tax law, e.g., non-tax-deductible expenses or tax-exempt income. In 2022, Deutsche Bank Group total income tax benefit amounted to € 64 million (see Annual Report 2022, Consolidated Statement of Income as well as Note 34 – Income Taxes) and income taxes paid during 2022 amounted to € 1,288 million in the year 2022 (see Annual Report 2022, Consolidated Statement of Cash Flows). Governance GRI 3-3, 207-2 Deutsche Bank operates a Three Lines of Defense risk management model. Based on this model, the bank has a clear framework setting out roles and responsibilities among the various functions for defined tax types to ensure that it remains compliant with the bank’s tax obligations. For example, the in-house tax function is an independent risk and control function separate to the business divisions and the bank employs skilled professionals to ensure that its position with respect to the bank’s own tax matters is robust. Preventing infringements GRI 3-3, 207-2, FS3 The bank operates a control framework and governance to ensure, in all material aspects, that it is compliant with applicable tax laws, files accurate tax returns, and pays the amount of tax due. In addition, tax evasion, which is a financial crime, is illegal and goes against Deutsche Bank’s culture, values and beliefs and the bank’s policies strictly prohibit aiding or abetting tax evasion. Deutsche Bank advocates for the development of sound regulations and internal procedures to combat financial crime, including tax evasion, and does not endorse actions that for example seek to undermine tax reporting of financial account information under applicable legislation, such as the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA). These requirements are also intended to prevent the bank from committing or facilitating – intentionally or negligently – criminal offenses. For more information on termination/discontinuation of relationships with clients, see also the chapter “Anti-financial crime – Inherent exposure to financial crime”. 90