Facebook to pay millions of pounds more in UK tax
Baku, March 5, AZERTAC
Facebook is set to pay millions of pounds more in tax in the UK after a major overhaul of its tax structure, according to BBC.
After heavy criticism that it was avoiding tax, the BBC can reveal that profits from the majority of Facebook's advertising revenue initiated in Britain will now be taxed in the UK.
It will no longer route sales through Ireland for its largest advertisers.
That includes major businesses such as Tesco, Sainsbury's, consumer goods firm Unilever and advertising giant WPP.
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% on the profits a business makes.
The changes will be put in place in April and Facebook's first, higher, tax bill, will be paid in 2017.
But the importance of Britain to Facebook is revealed by the fact it employs 850 people in the UK and is building a new headquarters in London.
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