Update on tax matter in Nepal
With regards to the information announced in a press release from Large Tax Payers Office (LTPO) in Nepal about the divestment of Ncell, Telia Company would like to reiterate its view on the matter.
The divestment of the holding in Ncell by TeliaSonera Norway Nepal Holding AS (TSNN), a Telia Company subsidiary jointly held with Visor, is not a taxable transaction in Nepal. The tax position is based on a thorough analysis which involved Nepalese, Norwegian and other tax expertise.
Furthermore, Nepal has entered into a tax treaty with Norway under which Norway has the right to tax the transaction. TSNN will, under Norwegian tax legislation, declare the transaction in Norway.
In the event of a formal tax claim in Nepal, TSNN are confident that it has no exposure to Capital Gains Tax in Nepal and that the tax position is appropriately addressed in the relevant transaction documents.