# Walmart paid most of $1 billion tax for PhonePe shifting base to India
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-01-05
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Walmart pays $1 billion tax bill to Indian government after
Meta Description: Walmart confirms payment of $943 million in tax to India after PhonePe's HQ move. Stay updated on PhonePe's $12 billion valuation!
URL: https://financedigest.com/walmart-paid-most-of-1-billion-tax-for-phonepe-shifting-base-to-indiahtml

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By Nandan Mandayam

BENGALURU (Reuters) – Walmart Inc late on Wednesday confirmed that it had already paid the Indian government most of the nearly $1 billion in tax owed after digital payments company PhonePe, which the U.S. retailer owns through Flipkart, shifted its headquarters from Singapore to India.

Walmart bought a controlling stake in Indian ecommerce giant Flipkart in 2018, [giving it ownership](https://www.financedigest.com/germany-signs-deal-to-give-ownership-of-benin-bronzes-to-nigeria.html "Germany signs deal to give ownership of Benin Bronzes to Nigeria") of PhonePe. The [company said last](https://www.financedigest.com/the-last-mile-of-statutory-reporting-is-absolutely-crucial-heres-how-one-global-company-does-it-with-onesource.html "The last mile of statutory reporting is absolutely crucial. Here’s how one global company does it with ONESOURCE") month it had completed the separation of PhonePe from Flipkart, adding that it would remain a majority stakeholder in both the companies.

Walmart has already paid most of the 78 billion rupees ($943.01 million)that was incurred as a capital gains tax after PhonePe [investors sold their stake in the Singapore entity and invested in the Indian entity following the domicile change,”](https://www.financedigest.com/bayer-hits-8-month-high-as-investors-welcome-ceo-change.html "Bayer hits 8-month high as investors welcome CEO change") a source with direct knowledge of the matter had told Reuters.

Walmart did not [give any other details on the payment](https://www.financedigest.com/giving-the-control-of-the-payment-process-back-to-consumers.html "Giving the Control of the Payment Process Back to Consumers").

A PhonePe spokesperson in a statement confirmed that Walmart and other [investors paid the capital gains](https://www.financedigest.com/investors-warn-big-consumer-firms-over-price-hikes-as-competitors-gain.html "Investors warn big consumer firms over price hikes as competitors gain") tax bill, adding it was the “right long-term strategy.

Moneycontrol reported last year PhonePe was raising [funds at a $12 billion](https://www.financedigest.com/uk-investors-add-1-2-billion-to-equity-funds-in-march-calastone.html "UK investors add .2 billion to equity funds in March – Calastone") valuation in a round led by General Atlantic. The [fintech firm was last valued](https://www.financedigest.com/fintech-incubation-more-value-than-meets-the-eye.html "FINTECH INCUBATION: MORE VALUE THAN MEETS THE EYE") at about $5.5 billion in December 2020.

Bloomberg News previously [reported that Walmart and other PhonePe investors](https://www.financedigest.com/its-back-to-school-for-investors-as-uk-student-accommodation-less-vulnerable-to-brexit-shock-reports-jll.html "It’s back to school for investors as UK student accommodation “less vulnerable to Brexit shock” reports JLL") would have to pay nearly $1 billion after its domicile change.

($1 = 82.7140 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru; Editing by Shounak Dasgupta and Nivedita Bhattacharjee)


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