Sign up USA
Proactive Investors - Run By Investors For Investors

Facebook to pay larger UK tax bill

Money made from UK adverts will be subject to UK taxes, rather than lower rates in Ireland.
Facebook to pay larger UK tax bill
In the UK the rate is 20%, while in Ireland is 12.5%.

Facebook (NASDAQ:FB) is going to pay more tax in the United Kingdom, because of plans to stop re-routing advertising revenues through the Republic of Ireland.

The social media group, which has faced scrutiny over the amount of tax it pays, will now put revenues generated from adverts for major UK customers through its books in this country.

It means that adverts paid for organisations by Tesco, Sainsbury, Unilever and WPP would now be subject to UK tax.

Potentially it marks a significant change in the amount of tax paid by Facebook.

Corporation tax is charged at 20% of profits in the UK, whereas the rate in Ireland is 12.5%.

The social media group reportedly paid just over £4,300 in UK taxes in 2014 and, according to a Channel 4 report, HMRC paid for £27,000 ads placed on Facebook in 2015. 

View full FB profile View Profile

Facebook Timeline

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © Proactiveinvestors.com, 2017. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use