Facebook Gets a $429, €320 Million Tax Break from the US Government
It's also not paying any income tax for 2012, but that's not the whole story
Facebook may not be making the same kind of money Google does, but it's doing good business and revenue is growing fast. But Zuckerberg has even more reasons to celebrate, not only is Facebook bringing in more money, it's keeping more of it as well.In fact, Facebook isn't paying any taxes for 2012, despite making several billions of dollars in revenue. That's according to a report by Citizens for Tax Justice.
Not only isn't Facebook paying anything, it's getting a $429 million, €320 million tax refund from the US government as a result of treating stock options for its employees as compensation.
On the face of it, it looks like Facebook is getting a great deal, but it's not quite as bad as the report claims. Facebook did pay taxes in 2012, just not income taxes.
Instead, Facebook paid quite a lot of taxes for its stock compensations to employees which got to cash in on their restricted stock last year after the IPO.
What's more, Facebook also withheld a portion of the stock it awarded its employees for tax purposes, taxes that the employees had to pay not Facebook itself.