An investigation of the normal tax consequences for non-resident cloud computing service providers in South Africa

[摘要] ENGLISH ABSTRACT: Cloud computing is a universal occurrence, to which South Africa is no exception.The technology of cloud computing has been the focus of extensive research, butthe tax consequences have not been investigated in such research. However, thenature of cloud computing activities, which are conducted via the internet,highlights many difficulties related to taxation. The main taxation-related problemsare elicited by the composition of these activities, namely the making available ofthe cloud by the service provider via the internet and the subsequent use of it bythe consumer at any worldwide location. This composition makes the classificationof such transactions and the subsequent taxation source determinationproblematic. Yet, from a South African perspective, there is little assistanceregarding these problems. As a result, significant income may escape SouthAfrican taxation liabilities.The aim of this study was to investigate South African taxation consequences fornon-resident1 cloud service providers who conduct activities with residents1 viathe internet. The focus of the study was twofold: first, to identify factors, whichindicates the classification of cloud computing activities as either a lease, a royalty(or its closely related know-how) or a service; and second, to determine the taxsource of each of these classifications. Hence, this study sought to determinewhether non-resident cloud service providers could possibly be liable for SouthAfrican taxation and to identify related challenges that need to be addressed toensure the collection of such taxes.

[发布机构] Stellenbosch University