Multinational companies required to report aggregate biz info
SEJONG, Apple Inc., Google and other multinational enterprises are required to provide detailed business information in order to deal with the issue of tax avoidance by multinational companies, the country's tax agency said Tuesday.
According to the National Tax Service, South Korea introduced the annual reporting by multinational companies of aggregate information in accordance with the OECD and G20 countries' guidance in 2015.
The scheme, aimed at assessing high-level transfer pricing and other profit-shifting risks by multinational firms, took effect this year.
Under the guidance, multinational enterprises whose revenues top a certain amount are required to submit their respective aggregate business report to the tax authorities by Jan. 2.
A multinational firm with a revenue of 1 trillion won (US$918 million) or more should submit their so-called country-by-country report to the tax authorities as well.
Such reports include details about their governance structures, fundraising and financial status, as well as their balance sheets in each country, the tax agency said.
Foreign companies operating in South Korea accounted for nearly 14 percent of the country's overall corporate tax income in 2015.
Multinational firms, which made up 1.5 percent of the country's 673,374 companies at the end of 2015, earned a combined 664 trillion won and paid a total of 5.3 trillion won in corporate tax that year.
Foreign companies here include multinational firms directly controlled by their parents in their home countries and foreign-invested firms.
Source: Yonhap News Agency