McDonald's is moving its non-US tax base to Britain from Luxembourg as it battles EU regulators over its tax affairs.
The fast food firm is to create a new UK-based holding company through which its non-US royalties will be routed.
The company stated, 'McDonald's selected the UK for the location of its new international holding structure because of significant number of staff based in London working on our international business, language, and connections to other markets.
'This change has a clear business rationale in matching our corporate structure to our new functional structure.'
As a result, McDonald’s said it will pay UK corporation tax on its overseas profits. The group has come under fire from EU officials who are investigating claims that it avoided more than £844m in tax through the use of a royalties loophole in Luxembourg.
Last year, the European Commission said the European arm of McDonald’s had paid virtually no corporation tax in Luxembourg or the US since 2009.