Facebook draws in $713m in ad revenue but will only pay around $20m in tax

May 24, 2021 10:48

Facebook Australia has reported 2020 advertising revenue collected in Australia came to $712.66 million, up $3.2 million on 2019, however, only $155.34 million is taxable, down from $167.1 in 2019.

The gap in the revenue collected from advertising and the final tabled income is down to $559.02 million in “cost of sales – reseller expense” otherwise known as internal company costs. Facebook Australia is wholly owned by Facebook Global Holdings II, a US incorporated entity.

“The company acts as a reseller of advertising services to designated Australian customers through a reseller agreement with another group company and generates revenues primarily through resale of advertising inventory on Facebook,” stated the financial report.

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Olivia Kruimel

Olivia Kruimel was the managing editor at Mumbrella. She has more than 15 years of experience in journalism, communications and marketing. Her journalism career began at Fairfax Media (now part of Nine) and includes various B2B publications such as B&T, Travel Today and ALB. As a marketer Olivia has worked for Standard Chartered and various global law firms.