Facebook paid $5 million in taxes in United Kingdom in 2015

Facebook paid $5 million in taxes in United Kingdom in 2015

Facebook paid $5.16 million in tax in the United Kingdom in 2015, as per the latest information released by popular social network. In year 2014, Facebook paid only $5,300 in tax in UK and was widely criticized. The issue once again puts in focus the tendency of multinationals to escape paying taxes where they are due. The companies use loopholes in tax system and in the recent months, many companies have been criticized for taking such approaches to escape taxes in countries where they are due.

Facebook registered £210 million in sales in the United Kingdom in 2015 and reported profit of £20 million. The company paid £4.16 million in tax in 2015. Market analysts expect that the company will pay higher taxes in 2016.

However, there is still a catch in this declaration of taxes in the United Kingdom. As per BBC report, the company will receive a tax credit of £11m, which can be used to offset tax bills at a later date.

Facebook is technically compliant with UK tax laws as the company registered its sales and profit in Ireland, instead of the United Kingdom, where majority of its sales were registered. Many European countries are raising voice against multinationals taking advantage of loopholes and this could result in changes in tax structure and laws.

Apple was recently slapped by European Commission with massive taxes and the profits generated by technology major in Europe. However, Apple has contested the European tax claims.

In 2015, Facebook employee count in the United Kingdom stood at 682, higher compared to 362 in 2014.


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