According to latest reports, Snapchat mother company Snap Inc. is set to announce London its global headquarters and started booking overseas revenue in all the countries where it has offices
Snap, announced Tuesday that it would straightaway start booking all of its international revenue in London, where it already have 75 people working for it. A spokeswoman elaborated that the company aims to shift soon to gathering revenue from foreign clients in any country where it has a local branch, enhancing its potential tax obligations.
Meanwhile the choice of the U.K. as a worldwide headquarters is a vote of confidence in Britain’s effort to entice foreign investment after its vote to leave the European Union. Officials at both technology companies and startups had voiced in the wake of the Brexit vote that they were anxious about their ability to keep hiring EU citizens, but firms including Apple Inc. have since publicized London expansion plans. Snap says the size of the U.K. advertising market, and the company’s 10 million users in the U.K., helped make this decision.
Snap is ready to go for a public offering that could value the company at as much as $25 billion currently has foreign offices in Canada, France, Australia and Ukraine, in addition to the U.K.
Furthermore Snap’s also aims to start gathering revenue from clients locally wherever it has an office is the latest indication of how governments, predominantly in the EU, are compelling technology firms to modify their tax structures.