White House Office Reviewing Cloud Computing Tax Rules

June 14, 2019, 10:29 PM

The White House’s regulatory office is reviewing proposed IRS rules aimed at ensuring that revenue U.S. multinationals generate from cloud computing transactions don’t escape U.S. taxation.

Cloud computing is an extremely profitable business for tech giants like Amazon.com Inc. The company in the first quarter of 2019 reported that revenue from its cloud computing division, Amazon Web Services, grew by almost 42% from a year earlier, to $7.7 billion. The unit’s operating income was $2.2 billion, or 50% of Amazon’s total.

Cloud computing services allow buyers to use a network of remote servers hosted on the internet to store, ...

To read the full article log in. To learn more about a subscription click here.