Thomson Reuters’ Software Helps Medical Device Makers Comply with New U.S. Excise Tax
ONESOURCE users will continue to achieve compliance, while thousands of companies rush to make amendments to their tax operational systems
New York, August 23, 2012 — Thomson Reuters today announced that the latest release of its ONESOURCE Indirect Tax global determination software will enable companies to efficiently comply with the new 2.3 percent medical devices tax.
The tax passed on June 28, 2012, and will go into effect on January 1, 2013. It is estimated to raise $20 billion by 2019.
With direct input from Thomson Reuters’ medical device manufacturer customers, this functionality was designed to ensure companies achieve tax compliance and also seamlessly manage business operations with minimal disruption.
“For businesses affected by the new medical devices tax, achieving compliance will require considerable effort and expense. However, Thomson Reuters ONESOURCE Indirect Tax users will be able to easily address this change,” said Gary Allen, vice president of software technology, ONESOURCE Indirect Tax. “Immediately after the tax was passed, we put a comprehensive plan in place to support the medical device tax rate change in our software well before the Jan. 1 deadline.”
Companies affected by the new Medical Device Excise Tax (MDET) risk penalties, interest charges, additional transaction processing time and reconciliation costs to the extent that their systems and processes aren’t ready to cope with the regulation’s demands. Businesses with an automated software system in place are in a better position to reduce these risks and meet the implementation deadline.
“There’s no question that the new Medical Device Excise Tax is going to create cost, complexity and risk,” said Stephen James, principal in charge of the Transaction Tax Systems Practice at the U.S. audit, tax and advisory firm of KPMG LLP, a market leader in helping companies manage their indirect tax obligations and a user and licensor of ONESOURCE technology. “We’re firmly of the view that technology is going to be key to a rapid and successful MDET deployment, enabling companies to meet the implementation deadlines with minimum cost and maximum compliance.”
ONESOURCE Indirect Tax Determination 5.5 has the flexibility to ensure companies can quickly respond to new indirect tax rules and regulations — such as the new medical devices tax — as they happen. The ONESOURCE Indirect Tax global software suite is designed to identify, measure, calculate and record the tax and pass the associated tax liability back to a company’s finance applications for booking of the liability in real-time.
For more information on how Thomson Reuters can help medical device manufacturers determine what products qualify as a medical device per the FDA and how ONESOURCE Indirect Tax can automate the management of these taxes, please call 1-888-885-0206 ext. 1 or email email@example.com.
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