Facebook UK Update: According to Facebook Inc (NASDAQ:FB) UK, it has paid £4.16 million in corporate taxes in 2015 amid a turnover of £210 million and a taxable revenue of £20 million.
New Facebook UK Policy
In 2014, the company has only paid not more than £5,000 in corporate taxes in the UK. This has sparked criticisms from politicians and tax advocates, noting that the social networking giant is among those multinational conglomerates that evade their financial duties through loopholes.
As a result, Facebook UK has changed its tax policy in the nation last year. This means that all UK sales in 2015 have been booked as taking place in the UK and not in Ireland.
“On Monday, we will start notifying large UK customers that from the start of April, they will receive invoices from Facebook UK and not Facebook Ireland,” read a memo dated last March.
Many multinational companies declare their sales in Europe as happening in Ireland because of the low corporate taxes in the country.
During the previous fiscal year (FY), the company has also generated £11.30 million tax credit, which it can use to offset future tax obligations in the UK.
Facebook UK has lost £52.50 million in 2015, which is nearly twice as much as the losses of $28.50 million in the prior FY. This is primarily attributed to the growth in turnover and labor force within the company. The number of employees has increased year-over-year to 362 from 282.
Since then, Facebook UK has created more jobs, employing more than 1,000 people now. In order to accommodate the growing employment, the company is already constructing a new office in London, which shall open next year.
While Facebook UK has generated the said tax credit legally, it still posts doubts among critics whether the company is duly paying its taxes to the UK government or not.
Facebook has closed at $128.99 on Friday.
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