Mar 05 2016 : The Times of India (Chennai)
FB to pay millions more in UK tax
London
PTI
|
Facebook, which used to pay just a few thousand pounds in tax in Britain, has been forced to cough up millions of pounds more after the social networking giant agreed to stop routing its UK sales through Ireland that allowed it to keep its tax bill extremely low.From April this year, the Silicon Valley headquartered firm will restructure its tax policy so that revenue generated from its largest advertisers displaying content on Facebook will be routed through the UK rather than Ireland.
The change, which will generate higher taxable profits in Britain, follows accusations that the US firm was paying far too little tax in the country .
The social media giant paid just £4,327 in corporation tax in 2014 in Britain.
“On Monday we will start notifying large UK customers that from the start of April they will receive in voices from Facebook UK and not Facebook Ireland,“ Facebook said in an internal post seen by the BBC.
Smaller business sales where advertising is booked online, with little or no Facebook staff intervention, will still be routed through Ireland, which will remain the company's international headquarters.
Corporation tax is levied at 20% in the UK on the profits a business makes. Facebook's first higher tax bill will be paid in 2017.
At this stage, it is not clear how much tax Facebook will pay as it is not under regulatory obligation to reveal the size of its UK business until it reaches 10% of its global operations, which generate revenues of nearly $18 billion dollars a year.
The change, which will generate higher taxable profits in Britain, follows accusations that the US firm was paying far too little tax in the country .
The social media giant paid just £4,327 in corporation tax in 2014 in Britain.
“On Monday we will start notifying large UK customers that from the start of April they will receive in voices from Facebook UK and not Facebook Ireland,“ Facebook said in an internal post seen by the BBC.
Smaller business sales where advertising is booked online, with little or no Facebook staff intervention, will still be routed through Ireland, which will remain the company's international headquarters.
Corporation tax is levied at 20% in the UK on the profits a business makes. Facebook's first higher tax bill will be paid in 2017.
At this stage, it is not clear how much tax Facebook will pay as it is not under regulatory obligation to reveal the size of its UK business until it reaches 10% of its global operations, which generate revenues of nearly $18 billion dollars a year.
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