IRS Prop. Reg.: Classifying Cloud, Digital Content Transactions (IRC §861)

Proposed rules that would provide guidance on classifying cloud transaction as either a provision of services or a lease of property for international provisions of the tax code, as well as modifying the rules for classifying transactions involving computer programs, by applying the rules to digital content transfers, issued by the IRS August 9. The proposed regulations would provide a definition of cloud transaction, as a transaction through which a person obtains non-de minimis on-demand network access to computer hardware, digital content, or other similar resources. Proposed Treasury Regulations Section 1.861-18 would broaden the scope of existing Regulations Section ...