Facebook will No Longer Route Taxes Through Ireland


In a major shake-up of the company’s global tax structure, Facebook has said that it will no longer route its tax payments through Ireland.

All revenues will be locally recorded, not via its international headquarters that is based in Dublin as it has been it disclosed today, meaning that it will pay tax in that country too and not Ireland.

In a blog post, Dave Wehner, the finance chief stated: “We believe that moving to a local selling structure will provide more transparency to governments and policymakers around the world who have called for greater visibility over the revenue associated with locally supported sales in their countries.”

It comes amid increasing pressure on corporations regarding their tax affairs and follows the successful bid of the Europea Union to get Apple to pay back taxes to the Irish government after it ordered that an agreement between the two was discovered to amount to state aid.

Facebook had already stated that it would book ad revenue in the United Kingdom if it came from businesses in the United Kingdom, due to pressure from the government of the United Kingdom and a backlash from the public.

The social network site, along with Google and Apple, took advantage of a loophole that is known as the Double-Irish where the revenue from other countries could be reported in Ireland where it could lessen its liabilities for corporate tax. In 2014, the Irish government announced that it planned to shut down the loophole by 2020.

Wehner admitted that it was a “large undertaking” and that it would require “significant” resources, taking some time to roll out.

He stated: “We plan to implement this change throughout 2018, with the goal of completing all offices by the first half of 2019.”