Tax on Google Pushes Waze Price Tag to $1.3 Billion

YERUSHALAYIM -

A tax of NIS 800 million ($300 million) to be paid by Google to the Israel Tax Authority for its purchase of Waze in order to export Waze’s intellectual property will push the total value of the deal to $1.3 billion, Globes reported on Monday.

Google accepted the full tax rate of 25 percent on the export of Waze’s intellectual property, unlike other companies which have sought to avoid the full tax by registering intellectual property as a separate company prior to export.

Tax officials hope that Google’s decision will set a standard for future deals.

Google has not commented on the report, and the Tax Authority declined to respond for reasons of confidentiality.