The Korean tax authorities’ challenge to Netflix’s transfer pricing

By Dr. Harold McClure, New York City (First published on MNETax)

The Korean National Tax Service on August 27 announced that it is examining the transfer pricing practices of 21 multinationals suspected of transferring large amounts of income earned in Korea to foreign countries without due tax payment.

One multinational in the Korean tax service’s crosshairs is Netflix, a very profitable multinational on a worldwide basis that has incurred losses in Korea. The Korean National Tax Service attributes these operating losses to high management fees, which may be disguised royalty payments.

Continue reading the article at MNETax.

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