JERUSALEM (JTA) — Israel earned $370 million in tax revenue on the sale of the navigation app Waze to Google.
Google is set to pay $230 million in taxes on its acquisition of the property rights to the free application for smart phones on top of the more than $143 million in taxes already paid on the purchase.
Waze on July 25 reported a purchase price for Waze of $966 million in cash 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 Menlo Park, Calif., 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.