Israel pockets $370 million from taxes on Waze sale

Israel earned $370 million in tax revenue on the sale of the navigation app Waze to Mountain View–based Google.

Google is set to pay $230 million in taxes on its acquisition of the property rights to the free application for smartphones, on top of more than $143 million in taxes already paid on the purchase.

Waze on July 25 reported a $966 million purchase price in its financial report for the second quarter of 2013, Globes reported. The purchase was completed in mid-May.

The Israeli firm’s managers and employees have remained in their Raanana headquarters rather than relocating to the Bay Area, which reportedly was a requirement of the purchase agreement. Google has said that Waze will remain a separate service and an independent company.

It is not known where Google will register Waze’s intellectual property, though it likely will eschew the United States in favor of a country with a lower tax liability. — jta