Tuesday, October 09, 2018

Facebook Profits

Facebook’s UK tax bill is 0.62% of their revenue here; on an income of £1.2bn

Facebook paid £15.8m in tax in the UK last year despite collecting a record £1.3bn in British sales. The Silicon Valley-based company’s UK taxable profits were reduced by a £444m charge for unexplained “administrative expenses”. Facebook was able to reduce its £15.8m tax bill further by claiming £8.4m in tax credits from granting its employees shares in the company. That means the net tax it paid was £7.4m – less than 1% of its total sales.

Globally, Facebook made $20bn (£15.3bn) of profit on total sales of $40bn last year, meaning it converted half of its sales into profits. However, in the UK only 5% of sales were converted into UK-taxable profits.

Amazon paid only £4.5m in UK tax last year, despite recording British sales of £8.7bn. Google paid £49.3m in UK taxes last year, on UK sales of £5.7bn. Apple UK paid only £10m in tax on British sales of £1.2bn.

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