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Separately said and reasonable costs for maintaining, servicing, or repairing software are exempt from revenue tax. Nonetheless, if a program routine maintenance agreement offers for the sale of equally taxable features (like updates to prewritten computer software) and nontaxable things, the cost for the whole servicing agreement is topic to tax Until the fees for the nontaxable things are:
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Even so, taxpayers should be mindful that subsequent improvements from the Tax Law or its interpretation may have an affect on the accuracy of the Tax Bulletin. The information supplied On this document doesn't address each problem and is not intended to swap the regulation or modify its which means.
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Frequently, the sale of the revision or update of prewritten software package is subject matter to tax since the sale of prewritten program.
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