Facebook is changing its tax structure so it will pay taxes locally instead of putting its revenue through international headquarters in Dublin, Ireland.
Bloomberg reports it will develop a "local selling structure" in places it has offices, resulting in paying taxes in that country through local advertisers.
Chief Financial Officer Dave Wehner said it means "that advertising revenue supported by our local teams will no longer be recorded by our international headquarters in Dublin, but will instead be recorded by our local company in that country".
"We believe that moving to a local selling structure will provide more transparency to governments and policy makers around the world who have called for greater visibility over the revenue associated with locally-supported sales in their countries," he said in a statement.
Currently, the European commission is expected in March to release proposals on increasing tax to multinational digital companies.
Mr Wehner said he aimed to have the change completed by the first half of 2019.
Facebook is a $300 billion company used by two million Kiwis every day.
It made more than $1 million profit in New Zealand in 2015 and paid just $43,000 in tax.