Facebook Will Pay Taxes Locally
Social Media giant Facebook will change its tax structure meaning instead of recording all advertising revenue through its international headquarters in Dublin, Ireland it will be recorded by tis local companies in those countries.
This moves comes after significant pressure and scrutiny from the USA and Europe for its tax practices.
Dave Wehner, CFO at Facebook says, “We believe that moving to a local selling structure will provide more transparency to governments and policy makers around the world who have called for greater visibility over the revenue associated with locally supported sales in their countries.
“It is our expectation that we will make this change in countries where we have a local office supporting advertisers in that country. That said, each country is unique, and we want to make sure we get this change right. This is a large undertaking that will require significant resources to implement around the world.”
Facebook says they will roll out the new tax structure through 2018 with the completion date to be mid-2019. Its headquarters in Menlo Park, California will be its US headquarters and the offices in Dublin will be the site for its international headquarters.