Software/Digital Day 30

The latest developments for Software and Digital Services companies.

Presented by Baker McKenzie

Live Seminar and Networking

Join us for the 30th annual Software/Digital Day, with Baker McKenzie presenting the latest developments for Software and Digital Services companies.

Thursday, April 30, 2026

Breakfast and Registration: 8:00 am - 8:30 am

Program: 8:30 am - 3:30 pm

Lunch: 12:30 pm - 1:15 pm

AGENDA:

8:00 - 8:30

Breakfast and Registration

8:30 - 9:00

Policy Update

In this era of volatility in international trade, new alliances are forming and historic alliances are strained. In the new multipolar world, what are the keys to designing and developing sound tax policy, promoting fair and efficient tax administration, achieving stability and predictability, and preventing double taxation? This plenary session will discuss the OECD “reengagement” on taxation of the digital economy and the way forward under the “side by side” compromise. We also will address the implications for US tariff policy of the Supreme Court decision in Learning Resources Inc. v. Trump, and how the rest of the world might respond.

9:00 - 9:45

US Tax Technical

This panel will discuss the implications of a variety of recent guidance, including Notice 2026-7 (Interim Guidance on CAMT), the existing state of guidance under section 174, and OBBBA changes to FDDEI (including treatment software deliveries).

9:45 - 10:45

Recharacterization of Income and Managing Risk of Double Taxation

This panel will discuss important recent developments in the US and abroad (including, among others, Chile, Malaysia, Philippines, Poland, and Germany) that impact the tax characterization of payments for software and digital services. We will review recent Observations and non-Member Positions to the article 12 Commentary in the OECD Model Tax Convention, and also will provide an update on the status of the ATO draft software ruling, and US Treasury engagement in this space. The panel will include a discussion of the new initiative in New Zealand, which reportedly is considering an update to its guidance on software characterization including SaaS.

10:45 - 11:00

Break

11:00 - 11:45

VAT and SALT Update

This panel will discuss indirect tax topics relevant to software companies, both here and abroad. The emphasis will be on comparing and contrasting the relevant rules. From the SALT perspective, we will examine the treatment of software (and SaaS) as tangible personal property, the scope of "data processing" services, and the current status of ads taxes and DSTs. From the VAT/GST perspective, we will discuss recent developments in ESS and VAT in the Digital Age, as well VAT obligations for marketplaces. We also will include a review of current controversies related to so-called “barter transactions” involving user data and the cross-over into VAT.

11:45 - 12:30

Managing Controversies

This panel will discuss recent key developments in tax controversy relevant to software / digital. The IRS maintains a core focus on R&D expenses, transfer pricing, section 162 expense treatment, FTC claims arising from aggressive foreign audits, and other areas. In this panel, we will cover best practices on audit and how to resolve issues for software and digital companies. This panel will cover what reduced funding and manpower means for the IRS, how to position an audit for success in this new landscape and what we are seeing in alternative forums available to taxpayers. We will also cover the opportunities for clients to leverage generative AI in managing tax controversies and the dispute resolution process. Taxpayers have the upper hand in when it comes to their own data – collecting it, managing it, maintaining it, and analyzing it. We will help you prepare to optimize strategically all while managing privilege and data protection risks.

12:30 - 1:15

Lunch

1:15 - 2:00

Industry Panel

Senior members of the tax teams at leading AI companies (Anthropic, Databricks, and OpenAI) will have a far-ranging discussion of the unique tax issues are they facing, best practices in their groups, and, yes, how they are using AI as a tool internally.

2:00 - 2:45

Hot Topics in TP for Software Companies

This session will touch on a variety of topics, including the project initiated by OECD Working Party 6 project on services, which will address, among other things, transfer pricing for cloud services and data centers. The panel will explore the transfer pricing and valuation of transactions involving data transfers. The panelists also will discuss transfer pricing for infrastructure, including transfers of (tangible and intangible) property related to data centers, cables, IRUs, and others.

2:45 - 3:30

AI Case Studies: Highlighting Key Tax Issues

This panel will use examples and cases studies to illustrate the range of issues that arise in the AI ecosystem, including transactions involving training data, development and operation of AI systems, and joint ventures and other deal structures.

MCLE/CPE CREDITS:

This course has been approved for up to 6.0 State Bar of California MCLE credits and up to 7.2 California Board of Accountancy CPE credits. While MCLE/CPE credit may be pre-approved in certain jurisdictions, final CPE accreditation approval is anticipated, but not guaranteed.

REGISTRATION & PRICING

Advance Registration made by 5:30 pm, Friday, April 24, 2026:

• TEI Members: $275
• Non-Members: $375
• TEI Emeritus Members: $100

All registrations after 5:30 pm, Friday, April 24, 2026: $425

Cancellations must be received before the advance registration deadline - no refunds or credits after this time.

For questions regarding registration, contact TEI Silicon Valley at teisiliconvalley@gmail.com

GENERAL INFORMATION:

Become a TEI member or Renew your membership: Enjoy seminar discounts, free social events, and a wide network of in-house tax professionals seeing the same things you are. Go to www.tei.org

• TEI Membership information, visit: http://www.tei.org/membership
• Questions about membership benefits, changes to the email list, contact Richard Eigenbrode at greigenbrode@gmail.com or teisiliconvalley@gmail.com