South Korean Supreme Court upholds Google Korea's win in 154 billion-won tax case
The Supreme Court rejected the tax office’s appeal, leaving a lower-court decision that favored Google Korea intact.
In 2020, the Seoul Yeoksam Tax Office imposed corporate and local income taxes totaling roughly 154 billion won on Google Korea, classifying transfers to Google Asia Pacific in Singapore as royalty income. Google Korea contested the assessment, arguing the payments represented business income and should not be taxed in Korea. The Seoul Administrative Court and subsequently the Seoul High Court ruled in Google’s favor, rejecting the royalty classification.
On Thursday, the Supreme Court dismissed the tax office’s appeal without a detailed review, thereby upholding the high court’s decision. The ruling leaves the tax liability of the Korean subsidiary unchanged and affirms the lower courts’ interpretation of the cross-border payments.
Why it matters
The decision clarifies how Korean tax law treats multinational tech firms' cross-border payments, affecting future tax assessments.
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