Tech giant Facebook is set to pay millions of pounds more in tax in the UK after a major overhaul of its tax structure. Following heavy recent criticism for its tax avoidance, 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.
Its believed that Facebook will account for substantially more revenue in the UK and will therefore pay a higher level on corporation tax on the profits it makes here. The current rate of corporation tax is levied at 20%.
There was widespread controversy when it was revealed that Facebook paid £4327 in corporation tax in the UK in 2014, despite Britain being one of the company’s biggest markets outside the US.
The share price has recovered a decent proportion of the drop at the start of the year, and now looks in a better position to build on 2015’s strong gains. In the pre-market shares are higher by 0.32%).
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