- Maryland’s DECADE Act (HB 898), signed May 12, 2026, creates a sales and use tax exemption for certain intercompany digital and technology services.
- The exemption covers data services, IT services, software publishing, digital codes, and digital products when both parties are in the same affiliated corporate group.
- Affiliated group status follows IRC Section 1504: corporations under a common parent with at least 80% ownership of voting power and total value.
- The exemption takes effect July 1, 2026, and removes tax from qualifying internal digital transactions.
- The change rolls back part of Maryland’s 2025 sales tax expansion that had taxed internal corporate arrangements.
Source: 1stopvat.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "United States"
- North Carolina Imposes New Tax on Peer-to-Peer Vehicle Sharing Programs
- California Expands Sales Tax to SaaS and Digital Software in 2027
- Indiana Tax Ruling: Cloud-Based Educational Software Access Not Subject to Sales Tax
- Maryland Exempts Intercompany Digital Transactions from Sales Tax
- Nashville Cuts Grocery Sales Tax After Tennessee House Bill 2186
