Jakub Porzycki/NurPhoto/Getty Images

Facebook will close its Irish subsidiary due to aggravated tax disputes with the EU

Facebook, which owns the social network of the same name, intends to close its Irish holding company Facebook International Holdings I Unlimited Company in connection with an ongoing dispute with the European Union over tax payments.

Jakub Porzycki / NurPhoto / Getty Images

Jakub Porzycki / NurPhoto / Getty Images

In 2018, a subsidiary of an American social network paid only $ 101 million in taxes in Ireland, while recording more than $ 15 billion in profit.

It is also reported that Facebook International Holdings I Unlimited Company generated about $ 30 billion in revenue, which is more than half of Facebook’s total annual turnover of $ 56 billion.

In a statement to The Times in London, a Facebook spokesperson indicated that the Irish venture “was eliminated as part of the changes that best fit the operating structure»Company. “We believe this is consistent with recent and upcoming tax changes advocated by policymakers around the world.“, – he added.

As a reminder, at the end of last year, Google transferred its own intellectual property assets from Ireland back to the United States after the country’s regulators decided to gradually eliminate loopholes that allow American companies to manipulate tax payments. Google is reported to have acted within the law, although this allowed it to avoid paying US income taxes and paying withholding tax in Europe.

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