Xiaomi in talks with Indian authorities to resolve tax issues

Xiaomi Corp said it has always operated in accordance with applicable laws and regulations in the world and it will continue to communicate with relevant Indian authorities about the tax issues.

The comments came after Reuters reported that India on Wednesday said in a statement that it had asked the local unit of Chinese smartphone giant Xiaomi to pay 6.53 billion rupees ($87.80 million) in import taxes after an investigation found that the company had evaded some duties.

Xiaomi said in a statement that the tax the Indian authorities wanted it to pay is related to imported goods' royalties between April 1, 2017, and June 30, 2020, and it has nothing to do with Xiaomi's recent business.

The root cause of the tax issue is that the parties have different opinions on the price determination of imported goods, Xiaomi said, adding that whether or not royalties including patent license fees should be included in the price of imported goods is a complicated technical problem.

Xiaomi said the statement is not the final result and it will continue to communicate with relevant Indian authorities on this issue.