McDonald's moves non-US tax HQ to Britain from Luxembourg

London : McDonald's will move fiscal headquarters for the majority of its non-US operations to Britain, it said Thursday, following an EU crackdown on tax deals struck by multinationals including the fast-food giant.

McDonald's is establishing a new Britain-based holding company to cover royalties from most licensing agreements outside the United States, shifting its tax base from Luxembourg.

The profits will be subject to British tax, McDonald's said in a statement that was immediately welcomed by the British government, which is under pressure to preserve economic stability as the country prepares to leave the European Union.

Prime Minister Theresa May has pledged to cut corporation tax to 17 percent by 2020 from the current 20 percent, prompting warnings by commentators in continental Europe that Britain is planning to become a "tax haven" post-Brexit.  

"We welcome continued investment from companies around the world into the UK, particularly where that's securing growth and increasing jobs," May's spokeswoman told reporters at a daily briefing.

Several tech giants including Facebook and Google have announced investment in Britain since the EU referendum in June but some companies, particularly in the finance sector, are considering relocation to continental Europe as a result of the Brexit vote.

McDonald's made its announcement shortly after a senior official at France's markets regulator told BBC television that Paris had received inquiries by large international banks with operations in London.

"McDonald's selected the UK for the location of its new international holding structure because of a significant number of staff based in London working on our international business, language, and connections to other markets," the company said.