Korea launches policy to tax global IT companies such as Apple, Google, Amazon and others

by Mike Cohen

Regarding the problem that "multinational corporations developing business in many countries are using taxation of corporate tax by using the mechanism of the law" caused many claims of "inequality" I have done it. Meanwhile, Korea has launched a policy of "imposing tax on huge multi-national companies such as Google , Apple, and Amazon ".

Korea moving to tax Google, Apple, Amazon
http://www.koreatimes.co.kr/www/tech/2018/08/129_253245.html

There are huge domestic IT companies such as NAVER and cacao in Korea, but these Korean IT companies are rival overseas multinational IT companies, "Despite generating revenues in Korea We are complaining of inequality that no tax is imposed. " IT companies that carry out global expansion profit billions of dollars (hundreds of billions of yen) annually, but by not paying taxes to the country where the business is deployed, "IT competitors fair competition The case that criticism is brought in as "It is not done" will not fail after all.

We are not able to impose corporate tax on multinational IT companies under the existing laws in Korea. In order to impose corporate tax on overseas companies it is necessary to "establish offices in Korea", multinational corporations based in countries such as the United States, China, Ireland " There is no obligation to pay income tax because there is no place "can be said to escape.

Under this law, multinational corporations will not have to pay taxes on Korea simply by saying "there is no business office" no matter how much profit is raised in Korea. In Korea, there seems to be criticism that "huge IT companies such as Amazon, Google, and Apple are getting big profits in Korea, they do not fulfill the social responsibility of tax payment".

by winnichip

In addition, IT companies in Korea, which are competitors, also said, "Although domestic companies pay taxes in compliance with laws, overseas companies can expand their business without paying taxes" reverse discrimination " "There is a big controversy going on as a result. Ahn Jeong-sang, who is a policy advisor to the ruling Millennium Democratic Party of Korea, said that it is an urgent matter to settle the tax evasion of multinational IT companies, "Based on the time when corporate activities have spread to digital places, We need to expand the concept of fixed establishments. "

For example, when an IT company exchanges huge data, it is very difficult to transfer data from abroad every time, so we have a local cache server that temporarily stores data in the country where the business is deployed There are cases. In this way, we are considering a shift of the idea that "If the company has business in Korea, it should be judged that the company's base is within Korea".

An official of an IT company headquartered in Seoul said, "There are too many regulations on domestic enterprises, and the reverse differentiation between Korean companies and multinational companies is serious," he said. Huge advertising profits gained in Korea We said that a fair taxation system should be imposed on multinational corporations such as Google sent to headquarters.

by Trey Ratcliff