Starbucks has announced it is now planning to pay more corporation tax than it is obliged to, amid the row over contributions from big foreign multi-national firms.
The company's UK Managing Director Kris Engskov said: "Having listened to customers and to the British public, Starbucks in the UK will be making changes which will result in the company paying higher corporation tax in the UK - above what is currently required by law.
"Specifically, in 2013 and 2014 Starbucks will not claim tax deductions for royalties or payments related to our intercompany charges."
A company statement continued: "In addition, he is announcing a commitment that Starbucks will propose to pay a significant amount of corporation tax in the UK during 2013 and 2014 regardless of whether our company is profitable during these years."
Starbucks estimates its changes will cost the firm an estimated £10m in extra tax annually over the next two years and has said it hasn't made profits in the UK.
In its 14 years since arriving in the UK, the chain has paid just £8.6m in corporation tax despite taking billions of pounds in revenue from its shops which now number more than 750.
The low bill has been explained by the practise of transfer pricing, which involves charges being made by companies in the same group based in different jurisdictions, with the effect of depressing profits in the higher-tax jurisdiction.
In Starbucks' case, that relates to the royalty fee paid to a sister company in the Netherlands for the right to use its brand and coffee recipe.
While Starbucks' previous tax arrangements were legal, its actions were called into question amid a wider debate about tax avoidance which has also engulfed the likes of Amazon and Google.
The companies were accused of "immorally" minimising UK tax bills in a damning report by the Public Accounts Committee of MPs.
The firm has argued that its UK operations already inject £300m into the UK economy annually.
Mr Engskov added in a speech to business leaders: "There is no doubt that tax has become an important subject of debate over the past several weeks and I think it's important to share that the emotion of the issue has taken us a bit by surprise.
"Since we started doing business here, we have always organised our tax affairs according to the letter of the law - always.
"We have used existing and agreed-upon measures to pay what is expected of us, but not more - just as most companies do and I am sure many of the people here today run their businesses in similar ways."
But in his remarks to the London Chamber of Commerce he admitted: "With the backdrop of these difficult times, in the area of tax, our customers clearly expect us to do more."
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