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.
Last week's webinar Doing Business in Germany: Avoiding Common Pitfalls encouraged a lot of discussion. There were several interesting questions from attendees for HSP's Germany experts; here are some of the highlights, and answers:
Does hiring an employee as a NRE create a permanent establishment in Germany?