Facebook paid £4.17 million ($5.18 million, 4.63 million euros) in British corporation tax last year, up from just £4,327 in 2014, accounts showed today.
The sharp increase reflects how the US technology giant has changed the way it records advertising revenues following public criticism.
It began declaring sales from its top British clients in Britain rather than Ireland, where it has its European headquarters — and where corporation tax is lower.
However, the tax paid is still only a fraction of the £211 million revenues that Facebook reported in Britain last year.
“We are proud that in 2015 we have continued to grow our business in the UK and created over 300 new high-skilled jobs,” a company spokesman said.
“We pay all the taxes that we are required to under UK law.”
US multinationals Apple and Google, which also run large parts of their international operations via Ireland, have also faced intense scrutiny over their tax affairs.
The corporate tax rate in Ireland is 12.5 percent, one of the lowest in the EU. In Britain it is 20 percent.