Daily Tax Report ®

Netflix EU Subsidiaries Will Begin Paying Tax Locally in 2021

Dec. 1, 2020, 5:58 PM

Netflix subsidiaries in three EU countries—France, Spain and the U.K.—will begin paying taxes on locally generated revenue to the respective national authorities beginning Jan. 1, 2021, the company told Bloomberg Tax on Tuesday.

Until now, the U.S.-based streaming giant has reported most revenue generated in the countries through a Netherlands-based subsidiary.

“As Netflix continues to grow in the U.K. and in other countries, we want our corporate structure to reflect this footprint,” a Netflix spokesman said. “So, from next year, revenue generated in the U.K. will be recognized in the U.K., and we will pay corporate income tax accordingly.”...

To read the full article log in. To learn more about a subscription click here.