A smartphone with the Netflix logo is seen on a keyboard in front of displayed "Streaming service" words in this illustration taken March 24, 2020. Reuters-Yonhap
A Seoul court on Tuesday ordered authorities to cancel 68.7 billion won ($ 46.6 million) in taxes levied on the local unit of U.S. streaming giant Netflix.
The Seoul Administrative Court ruled partly in favor of Netflix Services Korea after the company filed a lawsuit seeking to nullify corporate tax and other levies imposed by local tax authorities in November 2023.
In 2021, the National Tax Service slapped approximately 80 billion won in taxes on Netflix following an audit amid controversy that the company was paying relatively low corporate tax compared to the volume of its sales. The streaming service firm challenged the measure, seeking a cancellation of around 76.2 billion won of the levied taxes.
The local unit of Netflix, however, claimed that payments under such arrangements constitute business profits, which are not taxable under a tax treaty between Korea and the Netherlands designed to prevent double taxation.
Source: Korea Times News
