KPN books €3.7 billion tax loss on E-Plus sale
Dutch operator KPN has reached an agreement to book a tax loss of €3.7 billion with tax authorities in the country, according to Reuters.
The tax loss will be needed when KPN’s completes its expected sale of E-Plus to Telefónica Deutschland, and the company hopes the loss will offset its taxable income in the Netherlands as of 2014.
“Having reached an agreement with the Dutch tax authorities gives certainty about our tax position for the coming years,” said Eelco Blok, CEO at KPN.
“It is another important step for KPN to continue to invest in its operations and the latest technologies in the Netherlands.”
Dividends received or capital gains realised on its 20.5% shareholding in Telefónica will reportedly be subject to Dutch corporation tax at a statutory rate of 25%.
KPN is also the subject of a takeover bid from Carlos Slim’s América Movil, and last week confirmed it was in talks with the South American company.