Facebook will now start paying tax locally


Wehner said Facebook expects the change will be made in countries where it already has offices, but noted that each country is unique so it may take some time for new systems and invoicing protocols to be set up "to ensure a seamless transition to our new structure".

Social Media giant Facebook will change its tax structure meaning instead of recording all advertising revenue through its global headquarters in Dublin, Ireland it will be recorded by tis local companies in those countries.

Facebook is set to shake up its tax structure in order to avoid criticism by governments around the world by paying tax in the countries they operate in as opposed to just through one low taxed base.

Facebook is to start booking advertising revenue locally instead of re-routing it via its worldwide headquarters in Dublin in a response to criticism it has faced over its approach to paying tax, according to a Reuters report.

He described the move as a "large undertaking" that will require significant resources to implement around the world. Facebook Inc is changing its tax structure so that it will pay taxes in the country where sales are made, rather than funneling everything through its Irish subsidiary.

In April 2016, Facebook started recording revenues from its large customers in the United Kingdom in Britain, which resulted in an increase in the amount of tax it paid.

The move comes after the European Commission forced Ireland to start collecting €13 billion in unpaid taxes from Apple earlier this month, a year after it originally ordered the government to do so. Facebook started billing customers in the United Kingdom from its local subsidiary, rather than through Ireland, a move that resulted in an increased tax bill for the company in the UK. The company's move is aimed at paying tax in the country where profits are earned.