January 10, 2017
Snapchat parent company Snap, is setting up its international headquarters in London, England.
The London office now has 75 employees, up from the original six when it was established in 2015. Now that the office has officially been made the U.S. company’s international headquarters, Snap will have to pay U.K. taxes on sales in its overseas markets.
“We believe in the UK creative industries,” U.K. Snap Group general manager Claire Valoti said in a statement to the media. “The U.K. is where our advertising clients are, where more than 10 million daily Snapchatters are, and where we’ve already begun to hire talent.”
That Snapchat would choose to set up in England rather than a country with more favorable tax laws like Ireland or Luxembourg is somewhat unusual. But, given that the European Commission is cracking down on tech companies it believes are seeking tax shelters, perhaps Snap’s decision was a smart one. Even if it pays more taxes, it will avoid regulatory headaches.
Snapchat, which recently changed its company name to Snap Inc., has 150 million daily users. Snap secretly filed its paperwork for an initial public offering (IPO) last fall. The IPO filing with the Securities and Exchange Commission could value the California-based firm between $20 billion and $25 billion. The company could go public as early as March