Allocation of the Taxing Right to Payments for Cloud Computing-as-a-service PDF Download

Author: L. Fjord Kjærsgaard
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
The author analyses the options available to user jurisdictions for taxing the value generated by cloud computing service providers. The focus is on the challenges of allocating the taxing right to payments for cloud computing provided as a service in the form of Infrastructure-as-a-Service, Platform-as-a-Service and Software-as-a-Service, deployed as both public and private cloud computing. More specifically, the focus is on mixed contracts, the distinction between business income and royalties and whether the provision of such services constitute a permanent establishment. The analysis is primarily based on the OECD Model Tax Convention on Income and on Capital, but some relevant derogations and national practices are also considered. Among other things, it is concluded that the user jurisdictions, pursuant to the current international tax regime, will, under certain circumstances, be precluded from taxing the income of foreign cloud computing service providers, as cloud computing service providers may be able to deliver their digital services from remote locations while structuring their business around potential withholding taxes. Against this background, value creation and the fundamental principles of legal certainty, neutrality and the ability to pay tax are discussed. Finally, it is recommended that policymakers assess the full effects of the changes made in the tenth update to the OECD Model Tax Convention on Income and on Capital (21 November 2017) before introducing new measures.

Author: Alexander Weisser
Publisher: Éditions juridiques libres / Freier juristischer Verlag
ISBN: 2889540316
Category : Business & Economics
Languages : en
Pages : 594

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Book Description
Cloud computing may be borderless, but taxes are territorial. It is easy to imagine how the two concepts can clash. Much effort has gone into harmonizing tax rules across borders with the result that many jurisdictions have very similar tax rules. Even so, taxation remains a basic expression of national sovereignty. The goal of this thesis is to examine how international tax law applies to the cross-border cloud computing business. Both, multinational providers and customers of cloud computing services are analyzed. Reflecting three traditional areas of international tax scholarship, the goal could be stated in three questions. Which jurisdictions have the right to tax? What kinds of cloud computing transactions can be taxed? What amount of the profit is taxable? In more technical terms, this means enquiring into how the use of cloud computing affects the permanent establishment status of taxpayers, how the different kinds of cloud computing transactions are characterized under international double taxation treaties, and how the calculation of taxable cloud computing profit is affected by transfer pricing. In light of the current political events, the thesis also offers recommendations de lege lata through a systematic approach. Its first part assesses the current taxation of cloud computing. The second part evaluates whether the findings of this initial assessment conform to various superior principles of good rulemaking. It identifies which of the present tax rules ought to be adapted. The final part considers how the rules could be amended to become more compliant with the superior principles. In this way, Part I embodies the thesis, Part II the antithesis, and Part III seeks a synthesis.

Author: David Orzechowski-Zölzer
Publisher: Kluwer Law International B.V.
ISBN: 9403543078
Category : Law
Languages : en
Pages : 330

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Book Description
Although rules on the allocation of taxing rights for fees for technical services have been provided for in bilateral tax treaties by African, Asian, and South American countries for decades, it was only in the 2017 update that the UN Model Tax Treaty included Article 12A on the matter, thus suggesting its inclusion in the tax treaty network of its Member States. Consequently, from a cross-border perspective, the interpretation of Article 12A is of great importance for both taxpayers and tax authorities. This book presents the first comprehensive analysis of the scope of technical services in comparison to ordinary (non-technical) services and the differentiation between Article 12A and other allocation rules of the UN Model. The book’s analysis focuses on the interpretation of the concept of technical services by examining the historical evolution of Article 12 of the OECD and UN Models and the systematic context in which it is embedded. Aspects of this analysis examined include the following: the base-erosion principle as justification for establishing source taxing rights without the physical presence of the service provider in the state in which fees for technical services arise; whether the term ‘technical’ is sufficiently defined in the Commentaries to the UN Model or whether it shall be ascribed a different meaning to increase legal certainty for tax authorities and taxpayers; relevance of the OECD Model and its Commentaries as the basis for the UN Model and its Commentaries; rules of precedence concerning the application of Article 12A in relation to the other allocation rules of the UN Model; the connection between royalties and fees for technical services; application of Article 12A UN Model to challenges arising from the digitalized economy; and the allocation of taxing rights for fees for technical services rendered in a third state. Tax treaties of selected African countries are examined, as these countries were the earliest adopters of the concept of fees for technical services into their tax treaty network. The book also provides an overview of literature and jurisprudence on country practices in Brazil, India, and other countries, as well as relevant documents of international organizations. This book provides practitioners, government officials, and academics with a deep understanding of the interpretation and application of Article 12A UN Model. It will prove of great value in preparing for tax treaty negotiations and also in informing and advising enterprises that intend to conduct business in developing countries through the provision of specialized services.

Author: A. Weisser
Publisher:
ISBN: 9782889540303
Category :
Languages : en
Pages : 523

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Book Description
Cloud computing may be borderless, but taxes are territorial. It is easy to imagine how the two concepts can clash. Much effort has gone into harmonizing tax rules across borders with the result that many jurisdictions have very similar tax rules. Even so, taxation remains a basic expression of national sovereignty. The goal of this thesis is to examine how international tax law applies to the cross-border cloud computing business. Both, multinational providers and customers of cloud computing services are analyzed. Reflecting three traditional areas of international tax scholarship, the goal could be stated in three questions. Which jurisdictions have the right to tax? What kinds of cloud computing transactions can be taxed? What amount of the profitt is taxable? In more technical terms, this means enquiring into how the use of cloud computing affects the permanent establishment status of taxpayers, how the different kinds of cloud computing transactions are characterized under international double taxation treaties, and how the calculation of taxable cloud computing profit is affected by transfer pricing. In light of the current political events, the thesis also offers recommendations de lege lata through a systematic approach. Its first part assesses the current taxation of cloud computing. The second part evaluates whether the findings of this initial assessment conform to various superior principles of good rulemaking. It identifies which of the present tax rules ought to be adapted. The final part considers how the rules could be amended to become more compliant with the superior principles. In this way, Part I embodies the thesis, Part II the antithesis, and Part III seeks a synthesis.

Author: Vasiliki Koukoulioti
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
The current tax laws are based heavily on concepts of physical geography, such as controlling premises and physical equipment or employing staff in the jurisdiction. The geographical concepts do not accommodate the cloud business model in any sensible way. As a consequence, the taxation of cloud providers is particularly complex and uncertain, as this paper will show, by examining the direct and inidirect tax treatment of cloud computing services. The law is clearly in urgent need of reform, and this is accepted by most states even if they do not agree how reform should be achieved. Residence-based taxation of digital enterprises is becoming increasingly difficult and artificial. Also, traditional source rules, particularly the permanent establishment rule, are based on the assumption that cross-border activities require a physical presence in the market jurisdiction; in the digital economy this is no longer true. The suggested policy solutions attempt to take account of online service users' contribution and hence allocate taxing rights to the jurisdictions where they are located (market jurisdictions). More fundamentally, every change to the rules of international tax law tends to increase the tax revenues of some states whilst correspondingly decreasing the tax revenues of others. In this context, cloud computing transactions will be inevitably impacted by the new international tax landscape.

Author: Katharina Artinger
Publisher: Nomos Verlag
ISBN: 3748910452
Category : Law
Languages : en
Pages : 336

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Book Description
Die Digitalisierung hat enorme Auswirkungen auf die Grundidee der Mehrwertsteuer: den Austausch von Leistungen für Konsumzwecke. Die Dissertation konzentriert sich auf den Austausch von scheinbar "kostenlosen" Online-Dienstleistungen und die Zustimmung der Kunden zur Verwertung ihrer persönlichen Daten. Diese können der Mehrwertsteuer unterliegen, wobei die Bemessungsgrundlage auf Grundlage der Anbieterkosten berechnet werden muss. Die Ergebnisse basieren auf einer Analyse der EU-Mehrwertsteuer als Verbrauchsteuer im Vergleich zu anderen theoretischen Konsummodellen. Auch andere digitale Geschäftsmodelle, wie die Sharing Economy oder Bitcoins, können unter die Idee der EU-Mehrwertsteuer als Verbrauchsteuer subsumiert werden. Dissertationspreis der Nürnberger Steuergespräche e.V. 2020

Author: Christian Knotzer
Publisher: Kluwer Law International B.V.
ISBN: 940352488X
Category : Law
Languages : en
Pages : 551

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Book Description
This groundbreaking book – a major contribution addressing the imperative to find a solution to what has been labelled as the Tax Challenges Arising from the Digitalization of the Economy – provides the first comprehensive analysis of Article 12B of the UN Model Double Taxation Convention 2021, a model distributive rule for ‘Income from Automated Digital Services’. In extensive detail, the author thoroughly examines the article’s underlying principles, its individual provisions, the tax policy context that surrounds it, how it might be applied, and what its strengths and weaknesses are. The author’s analysis (which includes a paragraph-by-paragraph discussion of the article and examines its Commentary in extensive detail) covers all aspects of the article and its significance, including the following: how to reconcile the approach taken by Article 12B UN Model Convention with general principles underlying the coordination of taxing claims; legal and tax policy relation to other provisions of the UN Model Convention and to the OECD/Inclusive Framework Pillar One/Amount A; influence of developing countries in forums of international tax coordination; the value of country positions and minority views in Model Conventions; categories of digital services; the novel option for annual net taxation in Article 12B(3) UN Model Convention; and the proposal for a UN fast-track instrument. It is not surprising that the ubiquitous digitalization of the economy has led to a widespread sense of unease in the international tax community. Practitioners and policymakers who face this issue in their day-to-day work will greatly appreciate this book’s clear explanation of how Article 12B UN Model Convention works and benefit from its consideration of how it is likely to be implemented in the international double taxation treaty network.

Author: Louise Fjord Kjærsgaard
Publisher:
ISBN: 9788775680313
Category :
Languages : en
Pages :

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Author: Eric Kemmeren
Publisher: Linde Verlag GmbH
ISBN: 3709411912
Category : Law
Languages : en
Pages : 402

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Book Description
A Global Overview of International Tax Disputes on DTC This book is a unique publication that gives a global overview of international tax disputes in respect of double tax conventions and thereby fills a gap in the area of tax treaty case law. It covers the 32 most important tax treaty cases that were decided around the world in 2019. The systematic structure of each chapter allows for the easy and efficient study and comparison of the various methods adopted for applying and interpreting tax treaties in different cases. With the continuously increasing importance of tax treaties, “Tax Treaty Case Law around the Globe 2020” is a valuable reference tool for anyone interested in tax treaty case law, including tax practitioners, multinational businesses, policymakers, tax administrators, judges and academics.

Author: J.Á Gómez Requena
Publisher:
ISBN:
Category :
Languages : en
Pages :

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The aim of this article is to analyse the impact of highly digitalised business models on the distribution of taxing rights. The challenge encompasses the rules on the nexus and the allocation of profits, which require a modification to empower the source/market states and thus comply with the post-BEPS mandate of taxation in the territory where value is generated. Highly digitalised business models take advantage of data and user-generated content to create value and obtain profits. In the authorþs opinion, the solution to this problem must be respectful with the OECD Ottawa Taxation Framework Conditions for e-commerce, especially with tax neutrality and fairness. Given the difficult scenario of implementing a concept of virtual permanent establishment in the short and medium term, the author proposes three alternatives that respect tax neutrality and tax fairness, empowering the source/market states more:1. Creating a new income from the provision of advertising services in the Taxation Conventions 2. The expansive interpretation of the concept of royalties to include cloud-based services, and 3. A new Residual Profit Split Method that contains supply-side and demand-side factors.