Facebook wants to tax more ad sales in individual countries
Facebook wants to report more advertising revenue in individual countries rather than at its international headquarters in Ireland. This would also mean that more taxes would be due directly in the countries where the revenue is generated. However, this does not necessarily mean that more money will flow into those countries.
Companies from the online business are repeatedly criticized by politicians for bundling sales at locations with more favourable tax rates. The move is intended to create more transparency, the online network explained in a blog post on Tuesday. The change is to be implemented by mid-2019 in all countries in which Facebook has its own offices.
This involves around 30 countries - in Europe this would be Germany, France, Italy or Spain, for example. In practice, the changeover does not automatically mean higher taxes in each individual country, as the income is also offset against expenses such as investments or operating costs. (SDA/hae)
