South Korea Prepares To Impose Google Tax Among Multinational Companies Operating In The Country
The South Korean government is planning to levy Google Tax among foreign and multinational companies operating in the country. Korea Times reported Thursday that the government is set to swap over financial information on these companies with members of the Organization for Economic Cooperation and Development (OECD) and G20 countries.
The said exchange of financial information will compel these multinational companies pay appropriate taxes to countries where revenues are produced, as per government officials.
"We will exchange global companies' financial information with other countries to keep the agreements of the BEPS project," said Director Ahn Taek Soo, Ministry of Strategy and Finance. "We will prepare for it step by step, aiming to complete it by June next year."
The ministry said the 15 actions of the Base Erosion and Profit Shifting (BEPS), started by the OECD and G20, will be followed before the implementation.
Further reports revealed that Rep. Hong Ji Man of the ruling Saenuri Party proposed a bill last year to enforce the tax among multinational companies doing business in South Korea. However, the proposed bill remains pending in a subcommittee at the National Assembly.
"We aim to set up a basic legislation which enforces Google and other foreign firms pay for copy rights of materials they provide," said Min Sang Ki, adviser of Rep. Hong. "But, I'm not sure whether the bill can be passed as the Assembly term is coming to an end.
Min added Hong plans to resubmit the bill if it fails to be passed in the 19th term of parliament, which ends in May.
Last year, an official from the Ministry of Strategy and Finance said imposing Google tax would put an end to tax avoidance.
"The rest of the world is considering the adoption of the Google tax because they agree tax avoidance must stop," the official said, as noted by Korea Herald Oct. 19. "The Korean government is willing to take a preemptive action."
