Software is like Art, it doesn't have value until sold or can be used. If they sell services based on the software, they are generating revenue and then taxation on that revenue can occur.
Same as if they sell the software, either as a copy or ownership.
But not being able to take salary as a business expense seems like as thing that would happen if software in and of itself has value, which is largely does not.
> But not being able to take salary as a business expense seems like as thing that would happen if software in and of itself has value, which is largely does not.
To me it seems like a thing that just wouldn't happen. Forget software.
Say you own a McDonald's, and as part of your operations you have some people on staff to take orders, prepare food, and clean the bathrooms. Why are their wages not a deductible business expense?
If the answer is "they are, don't be stupid", then... what exactly was the R&D tax break?
Same as if they sell the software, either as a copy or ownership.
But not being able to take salary as a business expense seems like as thing that would happen if software in and of itself has value, which is largely does not.