Facebook will no longer route tax through Ireland in global shake up

Facebook will now start paying tax locally

All revenue will be recorded locally, not via its global headquarters based in Dublin as it has been it announced today.

For years, Facebook has legally minimised taxes by funnelling non-US income to the Republic of Ireland, a jurisdiction with only 12.5 per cent corporation tax.

Corporate taxation has become a controversial topic in the wake of revelations of tax avoidance schemes by multinationals which have led to calls for companies to pay more tax, while the European Union has begun exploring options for taxing digital giants.

Facebook Inc. announced a major change today to the way it reports advertising revenue outside of the US, claiming that it wants to be more transparent with local governments and businesses. The change comes amid a period where there is increasing scrutiny over companies that have held offshore revenue, especially in Ireland, where the European Commission in October slammed Dublin for failing to collect unpaid taxes from Apple.

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Like the Nokia 2, the smartphone might just offer software navigation keys instead of hardware buttons on the original Nokia 6 . The original Nokia 6 has a 5.5-inch display and is powered by 1.4GHz octa-core Qualcomm Snapdragon 430 processor.

Chief Financial Officer Dave Wehner said it means "that advertising revenue supported by our local teams will no longer be recorded by our worldwide headquarters in Dublin, but will instead be recorded by our local company in that country".

Wehner said Facebook would implement the change throughout 2018 and aim to complete it by the first half of 2019.

It's not clear yet how much extra tax Facebook will pay as a result of this, and there is still enough wiggle room for plans to change further down the line. "We will roll out new systems and invoicing as quickly as possible to ensure a seamless transition to our new structure", he said.

Facebook's revamp of its global tax practices comes roughly a week before US lawmakers hope to complete a significant overhaul of the country's tax system, which may impose a low, one-time tax on profits that USA multinationals have amassed overseas.

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