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All profits should be booked in the country of the revenue and no transfer pricing should be allowed for digital goods and only BoM for physical goods with seve
by christkv 6y ago
All profits should be booked in the country of the revenue and no transfer pricing should be allowed for digital goods and only BoM for physical goods with severe financial penalties on companies who fudge the BoM.
- elric 6y agoDoesn't that effectively kill small companies, who don't have time or money to spend on figuring out how to deal with taxes in 200 countries?
- rtkwe 6y agoDepends on the complexity. Most of the taxes would be the relatively simple sales tax where it's just the price of the good that matters. You'd probably see a lot more centralized stores acting as a go between for companies to handle selling things in each country.
- christkv 6y agoWe are mostly talking about massive multinationals who have entities in all countries they do business as they hire sales people etc but then funnel all the profits out of the country to Ireland and offshore entities. A SaaS in the UK selling something to someone in France is unlikely to have an Ireland -> Bermuda transfer price setup and will pay sales taxes in France and corporate taxes in the UK.