Categories: Money

Facebook Ireland has declared “we do not avoid tax

Its corporate tax bill was €16.53m last year, representing just a tiny percentage (0.002%) of revenues of €7.89 billion. This was still significantly larger than its 2014 tax bill of €3.4 million. Newly filed accounts showed that revenues were €3bn healthier than in 2014 – a 63% increase – while pre-tax profits sawed an eightfold increase from €12.82m in 2014 to €109.57m. The discrepancy between revenue and profits owes to massive administrative expenses Facebook Ireland pays to the social media giant’s other entities in royalties and fees.

The company’s Irish revenues accounted for 56% of its global turnover of $17.93bn in 2015.

A Facebook Ireland spokesperson noted that the tax bill “represents an effective tax rate of 12.8% in line with the statutory tax rate of 12.5%.”

They continued:

“There are strict accounting and tax rules in Ireland that all companies have to comply with. We follow these rules and pay all the taxes that we are required to under Irish law. We do not avoid tax. We comply with all tax laws in the countries in which we operate.”

Gareth Lambe, head of Facebook Ireland, said:
“We are proud that, in 2015, we have continued to grow our business and focus on our goal of connecting the world. The increase in our revenue is attributable to growth in advertising from the international business community that advertises on our platform.

“2016 has been an exciting year as we continue to invest in Ireland and concentrate on our advantages as a talent hub and centre of excellence.”

Facebook employs 1,500 people in Ireland. Staff costs were up from €62m to €77.5m last year.

It was also reported at the start of December that the company is considering opening a new office in Cork. It has been looking at moving into the new Capital development on St Patrick’s Street and Grand Parade, due for completion in early 2017.

Sameer
Sameer is a writer, entrepreneur and investor. He is passionate about inspiring entrepreneurs and women in business, telling great startup stories, providing readers with actionable insights on startup fundraising, startup marketing and startup non-obviousnesses and generally ranting on things that he thinks should be ranting about all while hoping to impress upon them to bet on themselves (as entrepreneurs) and bet on others (as investors or potential board members or executives or managers) who are really betting on themselves but need the motivation of someone else’s endorsement to get there. Sameer is a writer, entrepreneur and investor. He is passionate about inspiring entrepreneurs and women in business, telling great startup stories, providing readers with actionable insights on startup fundraising, startup marketing and startup non-obviousnesses and generally ranting on things that he thinks should be ranting about all while hoping to impress upon them to bet on themselves (as entrepreneurs) and bet on others (as investors or potential board members or executives or managers) who are really betting on themselves but need the motivation of someone else’s endorsement to get there.

Recent Posts

Startup Founders and DUIs — Why Even One Incident Can Scare Off Investors

A founder’s judgment influences how investors read reliability, discipline, and decision patterns during high-pressure phases of growth. A DUI places…

2 hours ago

Top 10 SEO Agencies in Malaysia with AI SEO Experts

Quick Comparison Table SEO Agency Core Strength AI Specialist Role Best For Rankpage Human-monitored AI-first SEO Specialized AEO and data-oriented…

4 hours ago

Top Healthcare Data Analytics Development Companies in 2025

Healthcare is rapidly transitioning into a data-driven ecosystem where clinical, operational, and administrative decisions rely heavily on real-time insights. From…

5 hours ago

How To Write A Letter Of Intent For Business Deals

A letter of intent is known as an LOI. The letter of intent is a type of document. You may…

1 day ago

The Real Problem With Letting Employees Use Personal Cards for Business

Small companies all started in the same place: employees used personal cards to cover work expenses and submitted receipts for…

3 days ago

What You Should Know About Wastewater Certifications

Clean water is, undeniably, one of the most vital resources on earth, and the professionals who manage and treat wastewater…

4 days ago