There are a number of international tax issues that affect providers and purchasers of cloud computing software, including characterizing software payments. Characterization affects how software receipts are taxed and whether withholding tax should be applied. In short, software-payment classification can have a big impact on the overall profitability of a sale and the cash flows associated with it.
The OECD has released transfer pricing and country-by-country reporting (CbCR) guidelines requiring certain multinational enterprises to provide additional information to international tax authorities on their global business operations, economic activities and transfer pricing policies. This post summarizes the key aspects of the new CbCR requirements and how they may affect your business.
The Indian Tax Authority issued the new 37BC rule that relieves non-resident businesses of the requirement to obtain an Indian tax registration known as a PAN when claiming reduced tax-treaty withholding rates on certain types of payments. Here's what it means for you.