Supreme Court rules for Google Korea in tax case over 154 billion won
The ruling rejected the authorities’ claim that payments made to the Singapore-based headquarters were taxable royalties.
The Google logo is seen outside the company's offices in London on June 24, 2025.
REUTERS/YONHAP
Google Korea has won its legal battle over more than 154 billion won ($116 million) in corporate and local income taxes after the Supreme Court dismissed the local tax authorities’ appeal, according to legal sources on Monday. The decision upholds lower court rulings that money the company sent to its Singapore-based regional headquarters cannot be taxed in Korea.
The Supreme Court last Thursday dismissed the appeal filed by the head of the Yeoksam District tax office without a full review, a procedure the top court uses when it finds an appeal raises no grounds that merit deliberation. The ruling finalizes Google Korea’s win in its suit seeking to cancel the tax.
The tax authorities had objected to Google Korea sending part of the income it earned in Korea, including advertising sales, to Google Asia Pacific, a Singapore-based entity that serves as Google’s regional headquarters. They imposed the taxes on Google Korea in 2020, arguing that the payments were royalties for the use of copyrights and know-how and were therefore taxable in Korea.
Google Korea countered that the money was business income for Google Asia Pacific, not royalty income that Korea could tax, and filed an administrative lawsuit.
In the original ruling, the court sided with Google Korea, finding it difficult to view the payments as compensation for know-how or for information related to knowledge or experience. The appellate court upheld that decision but dismissed Google Korea’s separate claim against the Gangnam District Office seeking to cancel the collection of local taxes. It found no practical benefit in a separate suit because local taxes are tied to corporate taxes.
BY JEONG JAE-HONG [[email protected]]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
