TechDashboard provides technology industry executives with the critical information needed to navigate the complex regulatory environment. The current issue covers the following topics:
International tax considerations for software companies: Withholding taxes
Software companies that are doing business internationally or considering doing so need to be aware of the withholding tax rules in the countries in which they plan to do business. These taxes can be 30 percent or more of gross software licensing income in many countries — an unpleasant surprise for an unprepared software vendor. John R. Barber, International Tax Services partner, provides tips to software companies for minimizing their tax liabilities and maximizing their income.
Key performance indicators prepare for a public debut
Key performance indicators (KPIs) are predictive measures used internally to guide business decisions, and have been used for years in the technology industry, but regulatory changes may soon make these indicators public. KPIs, particularly if they are standardized, have the potential to fill the information gap for stakeholders by capturing past trends and current value, as well as indications of future performance. The result will be a more accurate, more transparent view of a company’s financial and operational performance. Cal Hackeman, national managing partner of Grant Thornton’s Technology industry practice, suggests a set of five KPIs as standardized performance indicators for the technology industry.
Navigating the complexities of capital-raising activities
All businesses at some point require financing to fund ongoing operations and fuel expansion. Yet recent events in the global credit markets have made raising capital more challenging than ever. As a result, the terms and conditions under which capital is provided have become more creative and increasingly complex, partly to meet lenders’ and investors’ requirements. The Technology industry practice offers a primer on accounting guidelines related to debt and equity transactions and capital-raising alternatives.
