McDonald’s Corp (MCD.N) said on Thursday it would move its international tax base to the United Kingdom from Luxembourg after coming under increased scrutiny from European Union regulators over its tax arrangements in the small country.
McDonald’s said it would create a new international holding company domiciled in the UK that would receive the majority of royalties from licensing deals outside the United States.
“We are aligning our corporate structure with the way we do business, which is no longer in geographies, but in segments that group together countries with common market and growth characteristics,” McDonald’s said in a statement.
The move will also help to cut costs, McDonald’s said.