Facebook received a $429M tax refund from the government for the year 2012. On Feb. 16, Mail Online reported that the social networking site cashed in pretty major despite having made $1 billion in profits. The huge refund was thanks to stock options and tax deductions, making 2012 a successful year for the company.
"Facebook says it had a $559 million federal tax liability in 2012. But their refunds on the tax deductibility of stock options reduced the companies federal and state income taxes by $1.03 billion for the year, including refunds of earlier years’ taxes of $451 million. After a small portion is applied to state taxes, this benefit turns Facebook's liability into a refund," Mail Online reported.
The Facebook $429M tax refund is pretty incredible, given the amount of money that the company spends, but they have people working behind-the-scenes to ensure that they are doing everything appropriately -- and it is paying off (pun intended). Naturally employee salaries and advertising expenses are "write-offs" and the company can catch a break by significant investments.
"Facebook is hoping to reduce future tax liability by carrying forward another $2.17 billion in additional tax-option tax breaks for use in the years ahead," Mail Online reports. More investments are also planned for 2013.
Does Facebook's $429M tax refund surprise you?