Zhongguancun Online News: On January 5, Reuters reported that the Indian Ministry of Finance investigated Xiaomi's tax evasion and issued a notice to Xiaomi Technology India Pte Ltd to recover 653 million rupees and about 560 million yuan in taxes.
According to India's Ministry of Finance, Xiaomi India remitted royalties and licensing fees to Qualcomm and Xiaomi Mobile Software, which are not included in the transaction value of its imported goods. Xiaomi and its contract manufacturers also did not include royalties for imported MI brand mobile phones and parts in the assessable value of the product.
Today, Xiaomi made a four-point response to the incident:
Xiaomi adheres to legal and compliant operations around the world and abides by the relevant laws and regulations of the place of operation.
The Indian authorities required Xiaomi to pay back the import tax related to royalties between April 1, 2017 and June 30, 2020, which has nothing to do with Xiaomi's recent business, and the official statement is not the final result.
The root cause of this tax problem is that there are differences between the parties on the price determination of imported goods. Whether royalties, including patent royalties, should be included in the price of imported goods is a complex technical dilemma in all countries.
On this issue, Xiaomi will also continue to communicate with the relevant departments in India.
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![After being chased by India for 550 million yuan in taxes, how does Xiaomi respond?[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)