Back to articles

Facebook faces decreasing of profits

CEO of Facebook Mark Zuckerberg official said that ‘’his company’’ will pay tax reforms which means paying more taxes for tech giants differently in every country. It means that cross-border tax rules will be rewritten in 137 states. Zuckerberg’s speech at the Munich Security Conference: “We accept that [the reforms] may mean we have to

shutterstock_1575728848

CEO of Facebook Mark Zuckerberg official said that ‘’his company’’ will pay tax reforms which means paying more taxes for tech giants differently in every country. It means that cross-border tax rules will be rewritten in 137 states.

Zuckerberg’s speech at the Munich Security Conference: “We accept that [the reforms] may mean we have to pay more tax and pay it in different places under a new framework.”

Second important thing what he mentioned was: “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.”

Does it mean every company of FAANG will follow the Facebook’s way?  These countries nowadays book profits in low-tax countries like Ireland, no matter where their customers are. Tax reform means that tax must be paid where the profit was generated.

Many countries are preparing national digital taxes in the absence of a major redrafting of the rules, despite Washington’s threat of retaliatory trade tariffs because it sees such levies as discriminatory against big U.S tech groups.

Read more