KPMG International is pleased to announce the availability of a new, online regulatory tax resource on how countries are taxing cloud transactions entitled Country Perspectives on Taxing the Cloud.
Cloud computing is rapidly emerging as a critical force in transforming business models and is being adopted widely by both businesses and consumers Indeed, results from a recent KPMG survey (Clarity in the Cloud) show that 81 percent of businesses are either planning their initial cloud computing forays, are in early or advanced stages of experimentation or have full implementations. Yet, approximately 45 percent of the respondents are neither evaluating the tax implications of cloud nor do they know if these factors are being evaluated within their organization.
Given the lack of clarity over the tax treatment of cloud transactions, users and providers of cloud computing services need to plan their operations and activities carefully to manage their exposure while gaining the desired benefits from this rapidly expanding technology.
KPMG member firms from 18 key countries have evaluated how tax authorities are approaching the challenge of cloud computing, by examining local tax rules, the likely interpretations and the potential tax implications for multinational companies.
The online tool is accessed via an interactive map. Countries included are: Argentina, Brazil, Canada, China, France, Germany, India, Indonesia, Ireland, Italy, Japan, Luxembourg, Mexico, Netherlands, Spain, Switzerland, UK and the US.
KPMG will continue to add countries and analysis to this online resource as jurisdictions provide more clarity on the local treatment of cloud transactions. Check often at www.kpmg.com/taxingthecloud to stay on top of the latest updates.
Click to go to our online regulatory tax resource - Cloud.