Jan 4, 2023 8:19 AM | | 1 minute read
- walmart WMT others PhonePe Shareholders have to pay $1 billion in taxes after the digital payments company moves its headquarters to Bangalore, India.
- The bill is attributed to transfers and value growth. PhonePe PvtWalmart Takes Majority Ownership After Acquiring Parent Company Flipkart Online Service Pvtreported by Bloomberg.
- The fintech company spun off from Flipkart and relocated from Singapore to India General Atlantic, Qatar Investment Authorityand others, trigger tax.
- Also read: India Eyes Interoperable Networks to Defend Oligopoly Trends of Influential E-Commerce Platforms
- Investors, including Tiger Global Management, have raised a stake in India’s PhonePe at a new price, resulting in taxation of around £80bn for existing shareholders.
- For years, tech companies that have done most of their operations and business in India have moved to Singapore for its more friendly tax regime, ease of attracting foreign investment, and public debut in forex. It chose to incorporate, writes Bloomberg.
- PhonePe’s shift could be the predecessor to the digital payments company’s preparation for a stock market listing in India.
- Overseas-listed payments firms have struggled to get the green light from India’s financial and banking regulators. Reserve Bank of India.
- The government currently prohibits companies headquartered in India from listing directly on foreign exchanges.
- Walmart had $11.6 billion in cash and equivalents as of October 31, 2022.
- Price action: WMT shares traded 0.14% higher in the premarket at $143.80 on Wednesday’s final check.
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