Despite Record-Breaking Sales, Facebook’s UK Operations Pays Around 30 Million In Corporation Tax

It’s been a great year for Facebook as the Meta-owned firm was seen recording a staggering amount of sales worth billions. Yet, the company was outlined to pay corporation tax worth just 29 million British Pounds. Meanwhile, Facebook's average salary for workers had also increased to 262,000 Pounds.

The new report regarding the finances of the firm also revealed that its London wing produced a high gross income thanks to advertisers. The level rose by 37% since last year. And for those that may not be aware, Meta is the UK’s second biggest player in the advertising world, falling just a little behind Google.

The filing report for Facebook’s UK division showed taxes of nearly 229.5 million Pounds when it came to pre-tax gains last year. Similarly, the value of corporation tax last year was 29 million Pounds and which was even less than what it had paid in 2020.

Facebook issued a statement on the matter. They claim to be busy investing in the United Kingdom, opening up new facilities in places like King’s Cross. But they also addressed how most of their taxes are linked to the US as compared to the UK.

Meta happens to be in the middle of considering job cuts as the firm failed to meet its financial targets, not to mention a period of slump where the number of active users declined greatly this year.

Last year, it was a completely different picture for the Meta-owned firm. The UK wing seemed like they were on some sort of hiring spree. The workforce also experienced massive growth of 37% with a series of new leases on various sites.

The staff bill for the firm also rose and they did get their due share in payments with an increment of nearly 6%.

But it’s no surprise that no matter what, Meta continues to be criticized like its fellow archrivals, Amazon and search engine giant Google. So many people feel that it still isn’t doing its part and paying enough in terms of UK taxes.

For instance, a few insider analysts state how Meta took up nearly 6 billion pounds of ad spending in 2021.

In 2020, the UK introduced a new law that made sure tech giants were paying their due share of taxes that levies out to be 2% in terms of gross revenue. This is to target those companies that make big earnings but usually end up reporting values of profit that are much lower than reality.

Then in the next year, we’re hearing about a new tax that will come into play in various parts of the globe. This is a unified global tax system where standardization for collecting taxes will take place and those firms doing business in various nations will pay tax at a fixed rate of 15% corporation tax.

Just this past week, we saw Google paying around 200 million British Pounds for its corporation tax and the firm reported a turnover of about 3.4 billion Pounds in that time.

H/T: TG

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by Dr. Hura Anwar via Digital Information World