Fb boss Mark Zuckerberg is to supply public assist for worldwide tax reform which might see tech giants pay extra tax in Europe.
The social community founder is because of communicate on the Munich Safety Convention on Saturday and meet world leaders and members of the European Fee.
He’s anticipated to say that Fb will assist digital tax reform on a world scale beneath plans put ahead by the Organisation for Financial Co-operation and Growth (OECD).
Mr Zuckerberg will inform the convention that Fb accepts the scheme “might imply we have now to pay extra tax”.
The plans would see digital corporations, together with social media platforms and different web corporations, pay extra tax in nations the place they’ve important consumer-facing actions and generate income.
The present system for taxing multinationals is predicated on the place they’re bodily situated, which sees web corporations similar to Fb pay the vast majority of their tax in the US.
Mr Zuckerberg is anticipated to say: “I perceive that there’s frustration about how tech corporations are taxed in Europe.
“We additionally need tax reform and I’m glad the OECD is taking a look at this.
“We would like the OECD course of to succeed in order that we have now a secure and dependable system going ahead.
“And we settle for which will imply we have now to pay extra tax and pay it somewhere else beneath a brand new framework.”
The OECD plans have been criticised by the US, who argue it’s discriminatory in opposition to massive American corporations, significantly Silicon Valley corporations.
Whereas the OECD has mentioned it hopes to succeed in a world consensus on the scheme by the top of this yr, the UK has beforehand mentioned it intends to implement a short lived answer measure in April.
Former chancellor Sajid Javid mentioned final month that the UK digital providers tax – a 2% levy on revenues – will solely be a short lived measure till a world settlement is in place.
The OECD has urged the UK to carry off to permit time for such a world answer to be discovered.
Expertise corporations, specifically, have been criticised for the proportion of tax they pay in sure nations.
Fb says it pays all of the tax it owes, and the corporate says that in 2018 it paid three.eight billion in company tax globally.
Nonetheless, the social media big says that beneath the present guidelines the overwhelming majority of the tax it owes is paid within the US as that’s the place the majority of its features and property are situated.
In accordance with figures revealed on the finish of final yr, in 2018 the social community paid £28.5 million in UK taxes regardless of reporting income of £1.65 billion from promoting gross sales.