The Edinburgh Regional Centre will be home to around 2,600 full-time employees doing a range of customer service, compliance and large business work by 2021.
The centre will take approximately 190,000 square feet at New Waverley Edinburgh, with a lease commitment of at least 20 years.
HMRC chief executive, Jon Thompson, said the move is “another step in HMRC’s transformation, into a modern, digitally-advanced tax authority. HMRC will bring its teams together to promote closer working relationships, and increasing our effectiveness in collecting taxes.”
The Revenue's plan to close 137 of its 170 offices and replace them with 13 new regional tax centres, as part of its ten-year modernisation programme, has, however, previously been criticised.
The move, first announced in 2015, plans to reduce HMRC's budget by hundreds of millions of pounds. However the MPs warned it did not believe the move would save as much money as HMRC has predicted.
The first of the regional offices will be based in Croydon, it was announced last year.