The volatile electronic business is characterized by a seamless, borderless, and timeless marketplace. In this connection the internet is accelerating a number of trends that are laying the foundation for a new global economy, in which production and consumption become more mobile, dynamic, intangible, and multinational. The shift from a manufacturing-based economy to a service-based economy, working with etools and the dominance of information technology industry, knowledge man-agement and intangibles in ebusinesses will influence a revision of the current tradi-tional national-specific principles of accounting and taxation considering worldwide trade and commerce (”death of distance”).
The consequence of that globalization effects will be a challenge to the philosophy of traditional accounting and taxation and promote an acceleration of global harmoniza-tion of the principles of accounting and taxation.
The new business development and creation of innovative business planes in ebusi-nesses have to consider those certain properties and facilities of eManagement of resources in accounting and taxation.
The guideline will give some practical approaches and issues for planning ebusi-nesses considering the essential rules, directives, regulations and principles of ac-counting and taxation (“state of the art”).
Purpose of the project is to search in relevant German, U.S. and other references for relevant material about accounting and taxation of ebusinesses, summarize and structure the essentials to a practical guide for developing and planning ebusinesses.
Based on the relevant accounting principles for ebusinesses in German commercial law (HGB), International Accounting Standards (IAS) and US-General Accepted Ac-counting Principles (US-GAAP), sales and use tax, and income tax in Germany and US, the highlights of the content are web-based businesses, nexus based on server location, mobility of web-based businesses, web site expense deductions, acquisi-tions and dispositions of web-based businesses, valuation subjects and the relevant international recommended methods of transferpricing for multinational enterprises and tax administrations (OECD guidelines) corresponding to their certain cases of application.
Result of the project is a well-structured practical guide for developing and planning ebusinesses from accounting and taxation perspectives with implications for creation of business models and a lot of hints to further references.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Different Accounting Principles in the world
- Properties and Essentials of eBusiness Models and their Implications to accounting and taxation
- Creation opportunities of Legal entities and their Implications to Taxation
- Accounting Aspects
- German Commercial Law (HGB)
- Capitalizing Web Sites In German Balance Sheets
- International Accounting Standards (IAS)
- Intangibles (IAS 38)
- US-General Accepted Accounting Principles (US-GAAP)
- U.S.-Perspective of Intangibles
- Web Site Valuation
- Taxation Aspects
- Consumption Tax
- Value added Tax (VAT) in Germany
- VAT in Europe (EC directives and recommendations)
- Sales and Use Tax in US
- Income Tax
- Income Tax in Germany
- Income Tax in Europe
- Multistate Income Tax in US
- Transferpricing
- Comparable Uncontrolled Price (CUP)
- Resale Price Method (RPM)
- Cost Plus
- Comparable Profits Method (CPM)
- Residual Profit Split (RPS)
- Application of Transfer Pricing Methodologies (TPM) to eBusiness Transactions
- Tax Authority and Law
- Penalties
- Defending a Transfer Price and Advanced Pricing Arrangements (APA)
- Implications for creation of eBusiness Models
- Development and Trends in Future
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This project report provides a comprehensive guide to developing eBusiness models, considering both international accounting and taxation aspects. The report aims to provide practical insights for businesses venturing into the global e-commerce market, ensuring compliance with relevant regulations and best practices.
- International accounting principles and their impact on eBusiness
- Taxation implications of eBusiness transactions across different jurisdictions
- Key considerations for transfer pricing in the context of eBusiness
- Strategies for navigating tax authorities and regulations in the digital marketplace
- The future of eBusiness development and its ongoing challenges.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction
- Accounting Aspects
- Taxation Aspects
- Transferpricing
- Tax Authority and Law
- Implications for creation of eBusiness Models
- Development and Trends in Future
The introduction establishes the context for the report by highlighting the diverse accounting principles used worldwide and exploring the implications of eBusiness models on accounting and taxation practices. It further examines the potential for creating legal entities within the eBusiness realm and their tax-related implications.
This chapter delves into the accounting standards relevant to eBusiness, including German Commercial Law (HGB), International Accounting Standards (IAS), and U.S.-General Accepted Accounting Principles (US-GAAP). It examines how intangible assets, particularly websites, are accounted for within these frameworks and explores the methodologies used for website valuation.
This chapter explores the taxation landscape for eBusiness, focusing on both consumption tax and income tax. It examines Value Added Tax (VAT) systems in Germany and Europe, the Sales and Use Tax in the United States, and income tax regulations in various jurisdictions, providing insights into cross-border transactions and tax implications for eBusinesses.
This chapter addresses transfer pricing, a crucial aspect of taxation for multinational companies, focusing on how transfer pricing methodologies are applied to eBusiness transactions. It examines different methods, such as the Comparable Uncontrolled Price (CUP), Resale Price Method (RPM), and Cost Plus, and discusses their implications for eBusiness models.
This chapter delves into the interaction between eBusinesses and tax authorities. It covers potential penalties associated with non-compliance, strategies for defending transfer pricing, and the importance of Advance Pricing Arrangements (APA) in achieving tax certainty for eBusinesses.
This chapter explores the practical implications of the previously discussed accounting and taxation principles on the creation and development of eBusiness models. It provides insights into structuring eBusiness ventures to minimize tax burdens and comply with relevant regulations.
This chapter forecasts the future trajectory of eBusiness, analyzing emerging trends and challenges, particularly within the context of accounting and taxation. It explores the ongoing development of legal frameworks and regulatory landscape for eBusiness activities.
Schlüsselwörter (Keywords)
The primary focus of this report revolves around eBusiness development, international accounting standards, and taxation aspects. The keywords encompass various elements including international accounting principles, eBusiness models, transfer pricing, tax implications, and legal entities within the global e-commerce context. The report explores the impact of these factors on eBusiness strategies, emphasizing compliance with international regulations and navigating the complexities of cross-border transactions.
- Quote paper
- Paul-Jürgen Sparwasser (Author), 2001, Development-Guideline of eBusiness considering international accounting and taxation aspects, Munich, GRIN Verlag, https://www.grin.com/document/35315
