Monday, 05 Dec 2022

Facebook UK pays 29m corporation tax despite record 3.3bn sales

Facebook UK pays 29m corporation tax despite record 3.3bn sales


Facebook UK pays 29m corporation tax despite record 3.3bn sales

Facebook's UK operations paid £29m in corporation tax last year despite reporting a record £3.3bn in sales, while its average staff pay rose to £262,000.

The social media company's latest accounts for its London-based arm showed gross income from advertisers surged by more than 37% last year from £2.4bn to £3.3bn.

Its parent company, Meta, which also owns Instagram and WhatsApp, is the second-largest player in the UK digital advertising market, after Google.

The Companies House filing for Facebook UK, which describes itself as a provider of sales support, marketing services and engineering support to the Meta group, reported £229.5m in pre-tax profits last year. This was up more than a fifth on the £190m the company made in 2020.

The company paid £29.8m in UK corporation tax last year, down on the £36.7m it paid the year before. Facebook said it spent £1.8bn on sales support, marketing services and engineering support services.

Facebook UK's tax charge was £69.7m last year, however deductions including a tax credit of more than £32m meant the company paid far less.

"Over the last year we've continued to invest in the UK, including opening a new office campus in King's Cross [in London]," said a spokesperson for Meta. "While we paid $8.52bn [£7.65bn] in corporation tax globally last year, and our average effective tax rate over the last decade was around 20%, under current rules the vast majority of this is paid in the US."

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