Netflix and Google to Pay Higher Corporate Taxes in South Korea
It looks like major tech companies like Netflix and Google will no longer be able to avoid paying taxes in South Korea and possibly other countries as well:
The Korean offices of Netflix and Google will have to pay higher corporate taxes, upon the agreement of over 130 participants in the OECD blueprints drawn up to tackle global tax challenges.
Korea Times
Apart from the two firms, global IT giants including Amazon, Facebook and Apple will be subject to the so-called “Google tax,” whereby large digital companies will have to pay a certain amount of corporate tax, the rate of which is yet to be determined.
“The government will have the grounds to tax them, if the agreement is reached. Nothing has been finalized yet,” a finance ministry official said, Tuesday.
This is part of the global wave of efforts to tax the lucrative firms based on where their revenues are generated, not where their regional headquarters are located. Many global tech heavyweights have long managed to pay only a fraction of their profits as taxes here, largely by routing them to lower rate tax jurisdictions where their headquarters are based.
You can read more at the link.
