Classification Of Payments Resulting From Digital TransactionsTechnical Advisory Group (TAG) of the OECD found that one of the most controversial issues in characterizing e-commerce is the classification of the payments. These classifications are between the classifications of different payments which results from digital transactions as either business profits or royalties. This is an important difference because such a fundamental difference would have a great impact on the taxation of business profits and royalties.
The following questions have been addressed in this article:How the TAG Group of OECD classified payments of other digital product such as payments for the use of, or the right to use, industrial, commercial or scientific equipment?
What about the payments that results from computer equipment?
Whether the TAG Group examined the characteristics of payments which involve rental transactions for the purposes of determining whether such payments are for “the use of, or the right to use, industrial, commercial or scientific equipment”?