The Korea Times close
National
  • Politics
  • Diplomacy
  • Defense
  • Labor & Environment
  • Law & Crime
  • Health & Welfare
  • Embassy
  • Seoul & Provinces
  • Education
  • Foreign Communities
  • Obituaries
Biz & Tech
  • Auto
  • IT
  • Game
  • Manufacturing
  • Retail & Food
  • Energy
  • Construction
  • Airlines
Finance
  • Policies
  • Economy
  • Markets
  • Banks
  • Non-banks
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
Lifestyle
  • Arts
  • Books
  • Travel & Cuisine
  • Trend
  • Fashion
  • Around Town
  • Fortune Telling
Entertainment
  • K-pop
  • K-dramas & Shows
  • Movies
  • Music
  • Performances
  • Asia Model Festival
Sports
  • Football
  • Golf
  • Baseball
  • Other Sports
World
  • Asia Pacific
  • Americas
  • Europe & Africa
  • SCMP
Video
  • On the Spot
  • Feature
  • News
Photos
  • Photo News
  • Darkroom
Community
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
National
  • Politics
  • Diplomacy
  • Defense
  • Labor & Environment
  • Law & Crime
  • Health & Welfare
  • Embassy
  • Seoul & Provinces
  • Education
  • Foreign Communities
  • Obituaries
Tue, March 9, 2021 | 01:34
Business
Tax authority likely to reject Microsoft's appeal for refund of tax
Posted : 2016-09-22 10:51
Updated : 2016-09-22 10:51
Mail
Print Preview
Font Size Up
Font Size Down
The South Korean tax authority is expected to reject an appeal by U.S. software giant Microsoft Corp. to refund 634 billion won ($575.7 million) in a withholding tax, according to the tax authority and industry sources Thursday.

Microsoft filed complaints last month against the National Tax Service (NTS), seeking a refund of the withholding taxes paid by Samsung Electronics Co. to the NTS for using the software giant's patents.

Samsung is believed to have paid about 1 trillion won to Microsoft for using the U.S. company's patents in manufacturing smartphones, personal computers and other products.

Under the Korean tax rules and a tax treaty between Korea and the United States, Samsung had paid as much as 15 percent of the annual patent fees to the tax authority in corporate taxes on revenues earned by using the patents, according to the sources.

Microsoft is said to claim that it is double taxation because the software giant is paying taxes to the U.S. tax authorities. The American company cited a South Korean court ruling in 1992 that the tax authority has no right to require a company to pay a withholding tax on revenues earned by using patents that are not registered in Korea.

However, the NTS has claimed the withholding tax is fair because local firms pay patent royalties to Microsoft even though the patents are not registered in Korea.

A 2008 revision of corporate tax law stipulates that foreign patents are valid in Korea when the patents are used to produce goods in the Korean market.

As the NTS is expected to reject the appeal by Microsoft, the likelihood of Microsoft filing a lawsuit against the NTS is growing, according to the sources. (Yonhap)










 
 
  • All 85,000 foreign workers in Gyeonggi ordered to take virus test before March 22
  • Is Pfizer considering exit from Korean market?
  • Seoul still faces complications despite defense cost-sharing deal
  • South Korea, US reach defense cost-sharing agreement
  • Gov't finds no correlation between deaths and COVID-19 vaccine
  • Another delivery worker dies from apparent overwork
  • French billionaire politician Olivier Dassault dies in helicopter crash
  • Swiss citizens back proposal to ban face coverings in public
  • Enhanced awareness on rights interrupt animal-related businesses
  • New virus cases under 400
  • 'Mr. Queen' star Na In-woo to replace Ji Soo in 'River Where the Moon Rises' after bullying scandal 'Mr. Queen' star Na In-woo to replace Ji Soo in 'River Where the Moon Rises' after bullying scandal
  • BTS to become 1st Korean nominee to perform at upcoming Grammy Awards BTS to become 1st Korean nominee to perform at upcoming Grammy Awards
  • 'Penthouse 2' ratings soar to new high 'Penthouse 2' ratings soar to new high
  • Psy's 'Gangnam Style' becomes first K-pop song to hit 4 billion views on YouTube Psy's 'Gangnam Style' becomes first K-pop song to hit 4 billion views on YouTube
  • Meghan says she contemplated suicide, alleges royal racism Meghan says she contemplated suicide, alleges royal racism
DARKROOM
  • Bloody Sunday in Myanmar

    Bloody Sunday in Myanmar

  • Earth is suffering

    Earth is suffering

  • NASA's Perseverance rover is landing on Mars

    NASA's Perseverance rover is landing on Mars

  • Fun in the snow, sledding for everyone

    Fun in the snow, sledding for everyone

  • Our children deserve better: Part 3

    Our children deserve better: Part 3

  • About Korea Times
  • CEO Message
  • Times History
  • Content Sales
  • Media Kit
  • Contact Us
  • Location
  • Privacy Statement
  • Terms of Service
  • Mobile Service
  • RSS Service
  • 고충처리인
  • hankookilbo
  • Dongwha Group
  • Code of Ethics
Copyright