KPN Agrees To EUR 3.7 Bln Tax Book Loss On E-Plus Sale - Quick Facts

(RTTNews) - Dutch telecom firm Royal KPN N.V. (KPN, KKPNY.PK, KKPNF.PK) has reached a deal with the Dutch tax authorities concerning the size of a tax book loss which is likely to be recognized upon the sale completion of its German unit E-Plus to Telefónica Deutschland, an unit of Spanish telecommunication group Telefónica S.A. (TEF, TDE.L). This book loss totals around 3.7 billion euros and is expected to offset KPN's taxable income in The Netherlands in the coming years, starting in 2014.

The company said the dividends received and/or capital gains realized on KPN's 20.5% stake in Telefónica Deutschland would be subject to Dutch corporate income tax, with a statutory rate of 25 percent in the Netherlands.

KPN's Chief Executive stated, "Having reached an agreement with the Dutch tax authorities gives certainty about our tax position for the coming years. It is another important step for KPN to continue to invest in its operations and the latest technologies in The Netherlands."