Facebook Ireland pays €3.4m in tax despite increase in revenue

Revenue at Facebook Ireland rose to €4.8 billion in 2014, but the company paid only €3.4 million in tax, its accounts have revealed.

In 2013, the company paid €2.3 million in tax on turnover of almost €3 billion.

The company attributed the €1.8 billion rise in revenue in 2014 to a boost in online advertising. But pretax profit at Facebook’s Irish subsidiary rose to €12.8 million from €7.2 million a year earlier as administrative expenses rose to €4.7 billion. The company said the €1.8 billion rise in costs was due to royalties payable to Facebook for use of the platform and data hosting services, along with fees for management services and increased expenses associated with an expanded workforce. Facebook Ireland’s employee numbers rose from 425 in 2013 to 478 last year.

Facebook Ireland is a subsidiary of Facebook Ireland Holdings, which in turn is owned by Facebook Inc.

Operating profit at Facebook Ireland was almost €12.5 million last year, up from €7.2 million in 2013, while profit after tax in 2014 was €9.4 million, up from almost €5 million a year earlier.

The social network, which currently employs more than 1,000 people in Ireland, moved into new offices at Grand Canal Square in Dublin in June, to give it room for future growth.