McDonald's to move non-US tax base to UK
December 8, 2016 4:06 pm
McDonald’s is to move its non-US tax base from Luxembourg to the UK, the company has said.
The new holding company will pay UK tax on the royalties the firm receives outside the US.
McDonald’s said it had chosen the UK due to the “significant number of staff” it has in London.
The Luxembourg tax affairs of the burger giant are currently under formal investigation by the European Commission.
McDonald’s said that the holding company would have “responsibility for the majority of the royalties received from licensing the company’s global intellectual property rights outside the US”.
A McDonald’s spokesman said the shift in the tax domicile for its non-US operations was not to do with obtaining a better rate of corporation tax, but was more to do with making its operations more efficient.