Amazon Web Services Korea Paid 150 Billion KRW in Corporate Tax to the National Tax Service

[Asia Economy Reporter Han Jinju] Amazon Web Services Korea is reported to have paid 150 billion KRW in corporate tax surcharges at the end of last year.

According to related industries on the 21st, the Seoul Regional Tax Office conducted a tax audit on AWS Korea last year and notified them to pay 150 billion KRW in corporate tax. Amazon Korea paid the full amount of the notified tax in November last year and did not file any appeals.

The National Tax Service imposed the tax based on the fact that AWS Korea is effectively conducting business domestically. The criterion for granting taxing rights is a "fixed place of business," and AWS Korea opened a region, a data center, in Seoul in 2016. AWS Korea holds the number one market share in the domestic cloud market.

Until now, global ICT companies have often refused to pay taxes on the grounds that they do not have a fixed place of business in Korea because their servers are overseas. In January, the National Tax Service imposed a surcharge of 600 billion KRW on Google Korea, but they did not pay the tax and filed an appeal with the Tax Tribunal, disputing the charge.

This content was produced with the assistance of AI translation services.