Facebook: Global tax deal could mean us paying more tax

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Facebook: Global Tax Deal Could Mean Us Paying More Tax Facebook: Global Tax Deal Could Mean Us Paying More Tax
The world's largest digital social network said it was 'pleased' to see an agreement reached. Photo: PA Images.
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An international deal setting a global minimum corporate tax level could mean Facebook will pay more tax, the world's largest digital social network said on Friday.

“Facebook has long called for reform of the global tax rules, and we recognise this could mean paying more tax, and in different places,” Nick Clegg, Facebook Vice President for Global Affairs, said in a statement.

“The tax system needs to command public confidence, while giving certainty and stability to businesses. We are pleased to see an emerging international consensus.”

The milestone global deal to ensure big companies pay a minimum tax rate of 15 per cent was agreed on Friday after Ireland, Estonia and Hungary signed up to the elusive accord.

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The deal aims to end a four-decade-long "race to the bottom" by governments that have sought to attract investment and jobs by taxing multinational companies only lightly and allowing them to shop around for low tax rates.

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The deal aims to prevent large firms from booking profits in low-tax countries like Ireland regardless of where their clients are, an issue that has become ever more pressing with the rise of "Big Tech" giants that can easily do business across borders.

Out of the 140 countries involved, 136 supported the deal, with Kenya, Nigeria, Pakistan and Sri Lanka abstaining for now.

The Paris-based Organisation for Economic Cooperation and Development (OECD), which has been leading the talks, said that the deal would cover 90 per cent of the global economy.

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