Snapchat sets up international headquarters in London
Snap, the company behind messaging app Snapchat, says it has established its non-US headquarters in London.
It will pay taxes on UK and some international sales through the hub.
The move is unusual for a US technology company, many of which set up international headquarters in Ireland or other European countries due to tax breaks.
However, the European Commission has been cracking down on some of the tech companies' tax deals.
In addition, the OECD has has been pushing for G20 measures on corporate tax avoidance.
Claire Valoti, general manager of Snap Group in the UK, said: "We believe in the UK creative industries. The UK is where our advertising clients are, where more than 10 million daily Snapchatters are, and where we've already begun to hire talent."
The messaging app parent company already had a UK office in London, but as of Tuesday, the office will operate as its international headquarters.
Revenue from sales made to UK customers will be booked in the UK. Sales staff in the UK will also handle clients in countries outside the US which do not have a Snap sales force, and those revenues will also be recorded in the UK.
The messaging app has been expanding its London operations, growing its office in the city from around six staff last year to more than 75.
The company says it has 150 million daily active users around the world, with 50 million in Europe.
Many US technology companies, including Apple, Facebook, Google, and Twitter, have set up international headquarters in countries with lower corporate tax rates than the UK, such as Ireland.
However, a number of authorities, including the European Commission, have been investigating those deals.
In August last year, the European Commission said that Apple should pay Ireland ą13bn (?11bn) in back taxes, a ruling Apple is appealing against.
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