Friday 14 February 2020 10:39 am

Mark Zuckerberg 'accepts' Facebook may have to pay more tax in Europe

Facebook boss Mark Zuckerberg says he recognises that tech giants may to have pay more tax in Europe in future.

The social media giant’s founder said he understood the “frustration” surrounding the issue and backed plans from think tank, Organisation for Economic Co-operation and Development, to find a global solution.

Facebook and other tech giants have been accused of paying too little tax in countries where they operate.

Read more: Facebook valuation takes a $50bn hit after growth slump

Facebook paid just £28.5m in corporation tax in the UK in 2018 despite record sales of £1.65bn.

The social media firm has defended the amount by saying it pays what it owes.

Meanwhile, critics have said the OECD is moving too slowly if it is to meet its target or reaching a deal this year.

Zuckerberg to give speech

Zuckerberg will speak at a conference in Munich tomorrow and tell the audience: “I understand that there’s frustration about how tech companies are taxed in Europe. 

“We also want tax reform and I’m glad the OECD is looking at this. We want the OECD process to succeed so that we have a stable and reliable system going forward. 

“And we accept that may mean we have to pay more tax and pay it in different places under a new framework.”

The UK has plans to introduce its own digital services tax in April despite risking the wrath of the US. It could generate up to £500m per year from firms such as Facebook.

Read more: Facebook shares fall after reporting slowed growth

It is unclear how the resignation of Sajid Javid as chancellor will affect this move.

He stepped down yesterday after being asked to sack his special advisers.

France, meanwhile, has postponed its digital sales tax until the end of year as it awaits a global agreement.

The US had threatened to impose tariffs on French champagne and cheese in retaliation.

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