New request for Nepalese tax return

On 3 April Telia Company received a new letter from the tax authority in Nepal with a request to submit a tax return regarding the divestment of Ncell in 2016. Telia Company’s position has not changed, there is no obligation to file a tax return and no tax obligations in Nepal on the foreign part of the transaction.

As Telia Company has stated repeatedly there are no tax obligations in Nepal on the foreign part of the transaction. Instead taxes should be declared in Norway, which is home for the selling company TeliaSonera Norge Nepal Holding AS (TSNN), which Telia Company co-owns with Visor. Norway has a double taxation agreement with Nepal in which Nepal has waived its right to tax sale of shares owned by a Norwegian entity in favour of Norway. Tax on the local transaction has been paid in Nepal by the local shareholder.

Correct and responsible
It is important for Telia Company to handle business in a correct and responsible way and to pay tax according to laws and international treaties - not more and not less. Taxes and fees that lack support in the law, such as the one proposed by the Nepalese tax authority, cannot be paid.