Netfix does not pay corporate tax in the UK, despite 4.5 million subscribers

According to The Guardian, the well-known video streaming service received income of 200 million pounds sterling in the UK and did not pay a penny of income tax. After the launch of Netflix in the United Kingdom in 2012, the service quickly gained momentum. The minimum monthly subscription for UK customer service is £ 5.99.

According to an investigation conducted by the Sunday Times Sunday newspaper, the company's revenue in the UK for the previous year was 200 million pounds sterling, but this income was recorded abroad and tax was paid outside the borders of the Kingdom.

The same newspaper reported that Netflix International BV, which was registered in Luxembourg before the end of last year, had a net turnover in 2014 of 415 million pounds sterling, and a profit of 11.3 million pounds sterling, with most of the turnover generated subscribers from the UK. In Luxembourg, the company paid income tax of £ 573,396, which is about 5% of net income.
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A company spokesman said that due to the rapid growth of the business, the company also suffered heavy losses. However, next year the service plans to recruit a staff of 12 employees in the UK and start paying corporate income tax in the country. In July, even despite more than 65 million subscribers worldwide, the cost of content on the site for which the company paid the copyright holders was $ 7.7 billion (or 5.2 billion pounds), which is 4.6 times higher, than the company's net revenue.

The UK is the second largest market for Netfix. First place in the United States, where the company has 40 million subscribers. Experts predict that by the end of the decade the army of service subscribers in the United Kingdom will increase to 9.5 million.