Google Korea wins final ruling in 154 billion won tax dispute

South Korea's Supreme Court dismissed the tax authority's appeal in a case involving approximately 154 billion won in taxes assessed against Google Korea, judicial officials said on October 12.

The court rejected the appeal on October 8 without reviewing its merits. The decision left intact the Seoul High Court's ruling in favour of Google Korea in its lawsuit against the head of the Yeoksam Tax Office.

The dispute arose from corporate and local income taxes imposed in 2020. Tax officials argued that payments Google Korea made to Singapore-based Google Asia Pacific were taxable royalty income for the use of copyrights and know-how.

Google Korea argued that the payments were business income for the Singapore company and were therefore not taxable in South Korea. The Seoul Administrative Court found that they could not readily be classified as royalties, and the high court upheld that ruling.

The Supreme Court's dismissal completes the appeal process in this particular assessment dispute. The reports do not describe a general exemption from South Korean taxation for all of Google's activities.