Lost in the cloud
Business may be booming in the cloud, but many companies are still lost when it comes to the tax implications of doing business there. Results from our Tax in the Cloud Benchmarking Survey emphasize the need for greater alignment between tax and cloud business strategy, increased investment in infrastructure to support tax data, and much-needed improvements in transactional transparency.
- 92 percent of survey respondents acknowledge they are not taking advantage of existing statutory credits for investing in cloud.
- 85 percent said their company is not investing in a new data center and 67 percent said they are not planning to consume infrastructure as a service in the near future, signaling a distinct disconnect between tax and business strategy.
- 51 percent report that they have data limitations for tax reporting, planning, and audits.
- 51 percent of cloud providers are challenged by the ability to develop a process to understand transactions occurring within their organization.
- 36 percent cite correctly identifying and calculating tax obligations and filing returns as the biggest issue related to doing business in the cloud.
State & Local Tax ImplicationsInconsistencies in state and local tax rules and policies compound the complexity of tax in the cloud. Yet, overlooking state and local tax considerations relating to...
International Tax ImplicationsFrom an international perspective, uncertainty still exists regarding how foreign jurisdictions will classify and ultimately tax cloud transactions. The following key international...
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