'Google Tax' to be levied against multinationals in S.Korea

Multinational corporations in South Korea may be levied with the so-called "Google Tax" as early as next year.

The new guidelines for dealing with Base Erosion and Profit Shifting (BEPS) to crack down on global ICT companies that have used loopholes to avoid paying international taxes were released by the government on Monday.

The Ministry of Strategy and Finance said that the G-20 Nations and the OECD worked together for a blueprint for the "Google Tax".

Accordingly, starting next year, multinational companies such as Google, Amazon, Apple, Facebook and Starbucks may start paying taxes in South Korea.

The international companies have reportedly set up strategies to avoid paying hefty taxes. The new guidelines would strengthen taxing on transfered funds between countries.

It's estimated that the world loses 240 billion dollars a year in lost tax revenue.