Business · Companies · 1 hr ago
South Korea’s Supreme Court rules for Google Korea in tax dispute
South Korea’s Supreme Court has ruled in Google Korea’s favor in a dispute over more than 154 billion won in taxes.
The tax authorities assessed the taxes in 2020, saying some money Google Korea sent to Google Asia Pacific was payment for using intellectual property and know-how.
Google Asia Pacific is a Singapore company that serves as Google’s regional headquarters for Asia and the Pacific.
Google Korea argued the payments were the Singapore company’s business income and were not taxable in South Korea.
Lower courts agreed that the payments did not qualify as fees for intellectual property or know-how, and the Supreme Court left that ruling in place.
The decision settles the tax dispute in Google Korea’s favor.
South Korea’s Supreme Court has confirmed Google Korea’s victory in a dispute over more than 154 billion won in corporate taxes.
The court dismissed the tax office’s appeal without a full hearing on October 8, leaving the lower court ruling in place.
Tax authorities had assessed the taxes in 2020 over payments Google Korea made to Google Asia Pacific in Singapore.
Authorities said the payments were royalties for the use of copyright and know-how, while Google Korea argued they were business income earned by the Singapore company.
The first and second courts ruled for Google Korea, finding the payments were not shown to be fees for information or know-how.
- Who
- Google Korea and the tax authorities.
- What
- The Supreme Court confirmed Google Korea’s victory in its challenge to a corporate tax assessment of more than 154 billion won.
- When
- The Supreme Court dismissed the appeal on October 8; the ruling was reported on October 12, 2026.
- Where
- South Korea.
- Why
- Tax authorities treated payments to Google Asia Pacific as taxable royalties. Google Korea argued they were the Singapore company’s business income and were not taxable in South Korea.
Tax authorities
Google Korea
Payments to Google Asia Pacific
Tax authorities
The payments were royalties for the use of copyright and know-how and were taxable.
Google Korea
The payments were business income of Google Asia Pacific, not taxable in South Korea.
No direct quotes in the coverage so far.
Tax authorities assessed Google Korea more than 154 billion won in corporate and local income taxes over payments to Google Asia Pacific.
The court ruled for Google Korea, finding the payments were not shown to be fees for information or know-how.
The court upheld the ruling for Google Korea but dismissed its separate challenge to the local tax collection order.
The Supreme Court dismissed the tax office’s appeal without a full hearing, confirming Google Korea’s victory.
Yonhap reported the Supreme Court decision.
- Tax assessment
- More than 154 billion won
- Assessment year
- 2020
- Recipient of payments
- Google Asia Pacific, a Singapore company serving as the Asia-Pacific regional headquarters
- Supreme Court decision
- Appeal dismissed without a full hearing on October 8
- Report date
- October 12, 2026
Sources
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