Sinch reassesses historical tax exposure and records SEK 700 million one-time provision
STOCKHOLM, Feb. 12, 2025 /PRNewswire/ -- Sinch AB (publ) today announced that the company has reassessed its position for historical non-income based taxes. Because of this revised position, the company will record a SEK 700 million one-time provision that affects reported Operating expenses, EBITDA and Profit for the period in the fourth quarter and full year of 2024. From a forward-looking perspective, Sinch does not expect that this reassessed position will affect the company's competitiveness or ability to meet its financial targets.
Revised assessment of historical tax exposure
Sinch is not currently subject to tax assessment or audit in any of the jurisdictions relating to the provision.
However, Sinch operates in a complex, global tax environment where many jurisdictions are continually clarifying their tax legislation relating to how certain taxes apply to services like the ones Sinch sells. As a result of multiple acquisitions, Sinch operates multiple legal entities that offer similar or related services to customers within the same jurisdiction.
To determine the company's tax position within each jurisdiction, Sinch has proactively initiated a review of its current tax position and previous practice in multiple previous years. As a consequence of this review, the company will record a one-time provision for historical exposure of SEK 700m in the fourth quarter of 2024. The provision is based on several key assumptions and reflects the company's best estimate of the aforementioned exposure.
Changes related to non-income based taxes do not affect the company's reported effective tax rate. Sinch does not expect that its reassessed position will affect the company's competitiveness or ability to meet its financial targets.
Publication of full year results
As previously communicated, Sinch will publish its results for the fourth quarter and full year of 2024 tomorrow, Thursday 13 February 2025, at 07:30 CET. Sinch's CEO Laurinda Pang and CFO Roshan Saldanha will present the report through a conference call and webcast that will take place at 14:00 CET on the same day. After the presentation, there will be an opportunity to ask questions.
For further information, please contact
Ola Elmeland
Investor Relations Director
Mobile: +46 721 43 34 59
E-mail: investors@sinch.com
About Sinch
Sinch is pioneering the way the world communicates. More than 175,000 businesses – including many of the world's largest tech companies – rely on Sinch's Customer Communications Cloud to improve customer experience through mobile messaging, voice and email. Sinch has been profitable and fast-growing since it was founded in 2008. It is headquartered in Stockholm, Sweden, with shares traded at NASDAQStockholm: XSTO:SINCH. Learn more at sinch.com.
Sinch AB (publ) is required to publish this information pursuant to the EU Market Abuse Regulation. The information was released for publication by the contact person above on February 12, 2025, at 18:30 CET.
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
202502012_Sinch_Reassessment_ENG |
View original content:https://www.prnewswire.com/news-releases/sinch-reassesses-historical-tax-exposure-and-records-sek-700-million-one-time-provision-302375085.html
SOURCE Sinch AB