Meta halves Belgium corporate tax bill for 2025

Meta's Belgian subsidiary expects to pay corporate tax of €917,489 for fiscal year 2025, more than 50% lower than the €1.89 million paid in 2024. The reduction follows a profit‑shifting arrangement that routes most advertising revenue through its Irish entity, where the corporate tax rate is 12.5% (or the 15% global minimum) versus Belgium’s 25%.

The Belgian unit’s revenue fell 5.4% to €103.63 million and operating profit dropped from €6.9 million to €3.27 million. A “cost‑plus” model reimburses local costs from the parent, limiting the Belgian profit margin. Analysts estimate the real Belgian sales at €350‑400 million, far above the declared figure. Internally, Meta halved its Belgian staff to 22.1 full‑time equivalents, ended a technical‑support contract that accounted for about 10% of local revenue, and introduced a cash‑pooling mechanism that replaced €8.95 million of liquid assets with a short‑term claim. Despite the low profit tax, the subsidiary paid €8.95 million in payroll taxes last year. Meta declined to comment.