×
You will be redirected back to your article in seconds

Facebook Makes Headlines in France for Paying ‘Only’ 1.16 Million Euros in Taxes

PARIS– Just a couple weeks after Google won its court case in France to avoid paying $1.3 billion in back taxes, Facebook made headlines in the country after a local report stated that the company had paid only 1.16 million Euros in income taxes in 2016.

The report, published on BFM Business and based on Facebook’s tax return for 2016, says Facebook declared 36.95 million euros of annual revenue in France and therefore paid 1.16 million in income taxes. However, Facebook made an estimated 540 million euros in France last year, based on the fact that it had 32 million monthly users in France who each brought 16.8 euros, according to the company’s filing.

If Facebook had declared 540 million euros in France, they would have to pay 80 million euros.

Reacting to the polemic, Facebook told Variety that it payed taxes required by laws wherever it operates.”

Like Google, Facebook has been avoiding paying high taxes in France (45% of the revenue) by routing sales made in the country through an Irish-based subsidiary. Facebook’s French office, located in Paris, is officially in charge of marketing and R&D.

Google, which was sued for owing $1.3 billion in back taxes in France, just won its legal battle after an administrative court ruled that Google’s Irish unit was not taxable in France. Google is believed to employ 700 people in France.

Asked about the tax situation of Google, Amazon, Facebook and Apple in France, Mounir Mahjoubi, the secretary of state in charge of digital affairs, told French journalists that these global companies must pay in France a “legitimate tax” in line with the business they are doing in France. He said the European commission had to weight in.

“Today, European law, French law, don’t allow us to tax these companies (…) because they are new operators who transform the model of an international form with transactions that are being routed under our radar.”

“But all of this is very legal. We are not saying that these companies are doing illegal things, we’re saying that it’s not morally acceptable.”

France President, Emmanuel Macron, also addressed the necessity to tax Google, Amazon, Facebook and Apple during the presidential race. He pledged to create a “cultural pass,” worth 500 euros for every French residents on their 18th birthday, which would be partly financed by a tax levied on these companies (Google, Amazon, Facebook and Apple).

French authors societies, including the SACD, have also initiated discussions with Facebook and Snapchat, among other global companies that have started producing scripted content locally, to have them pay royalties to French creatives.

More Digital

  • Vaccination

    YouTube Yanks Ads From Anti-Vaccination Conspiracy Channels

    YouTube, under fire for facilitating the spread of conspiracy theories and other misinformation, said it will no longer serve ads on channels that espouse anti-vaccination rhetoric. The Google-owned video giant cited its advertising policy that bans “dangerous and harmful” content from eligibility in its monetization program. “We have strict policies that govern what videos we [...]

  • Evan Williams, Twitter founder (R) and

    Twitter Co-Founder Evan Williams Steps Down From Company’s Board

    Twitter co-founder Evan “Ev” Williams is stepping down from the company’s board, Twitter announced in a SEC filing Friday afternoon. Williams will depart from the board at the end of this month, according to the filing. “It’s been an incredible 13 years, and I’m proud of what Twitter has accomplished during my time with the [...]

  • Facebook Logo

    Facebook Shuts Down Controversial Ovano VPN App

    Responding to a continued backlash over its data collection practices, Facebook pulled the plug on its Ovano VPN app Friday. Ovano, which promised users an added level of privacy while using public Wifi hotspots, was used by Facebook for market research purposes. Facebook removed the app from the Google Play store Friday, and the company [...]

  • Smosh

    Smosh Acquired by Rhett & Link's Mythical Entertainment

    UPDATED: Smosh, the long-running YouTube comedy brand, has been acquired by Mythical Entertainment, the company formed by Rhett & Link, hosts of comedy show “Good Mythical Morning.” As first reported by Variety last week, Mythical emerged as the leading candidate to buy Smosh, which was left stranded after parent company Defy Media shut down without [...]

  • China Video Streaming Giant iQIYI Loses

    Chinese Video Giant iQIYI Loses $1.3 Billion in 2018

    Chinese video streaming firm iQIYI lost over $1.3 billion in 2018, as revenues and subscriber numbers ballooned. The deepening losses reflected ever higher spending on original content production. Announcing its first full-year financials since a March IPO that launched it onto the NASDAQ, iQIYI said that it lost $1.3 billion (RMB9.1 billion) last compared with [...]

  • Roku headquarters

    Roku Aims to Top $1 Billion in Revenue in 2019, Beats Holiday Quarter Earnings Expectations

    Roku wants to become a billion-dollar company in 2019, and invest more in its ongoing international expansion. The streaming-device maker told investors on Thursday that it expects to generate between $1 billion and $1.025 billion this year, and that international growth was one of its key investment areas for 2019. Roku made these announcements as [...]

More From Our Brands

Access exclusive content