Accessibility links

Facebook Set to Pay More British Taxes After Criticism

  • Associated Press

FILE - A sign with Facebook's "Like" logo is posted at Facebook headquarters in Menlo Park, California, Dec. 13, 2011.

FILE - A sign with Facebook's "Like" logo is posted at Facebook headquarters in Menlo Park, California, Dec. 13, 2011.

Social media giant Facebook, which has been under fire in Britain for its tax arrangements, says it will stop routing its British sales through Ireland - a practice that had kept its U.K. tax bill extremely low.

Facebook, Amazon and other multinationals have been criticized for using complex tax arrangements to drastically reduce their bills.

Facebook said in a statement Friday that from April, “U.K. sales made directly by our U.K. team will be booked in the U.K., not Ireland. Facebook U.K. will then record the revenue from these sales.”

The company said the change would “provide transparency to Facebook's operations in the U.K.”

Facebook paid just 4,327 pounds ($6,116) in corporation tax in 2014 in Britain, one of its biggest markets outside the United States.

XS
SM
MD
LG