London - Starbucks says it will pay about £10m ($16m) in British tax in each of the next two years, after being accused by the country's lawmakers of "immorally" avoiding tax.
UK managing director, Kris Engskov, said on Thursday that the firm had agreed to pay more than required by law, because "our customers clearly expect us to do more".
The company has 700 British outlets, but says it has yet to turn a profit, and has paid just £8.6m in corporation tax in 14 years.
Starbucks says this is due to a process involving paying royalties to its European headquarters in the Netherlands.
Following criticism from lawmakers and a campaign by protest group UK Uncut, Starbucks said this week that it was reviewing its tax approach.
Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.