Okay sounds good in this case but what if a company really needs to buy a licence from an offshore company, let's say a critical technical part in your manufacturing process. Then you can't deduct it but in reality these are your costs.
Remember that the problem is caused by companies abusing the system but the rules are there because honest companies need to operate.
The real solution would fix the issue while allowing honest companies to work just like they did before. The problem is that software companies are composed almost purely out of intellectual property, that is intangible and hard to really track.
> Then you can't deduct it but in reality these are your costs.
The tax wasn't collected to begin with. The reason you can deduct it when buying from a local company is that they paid it. If you buy from a foreign company that hasn't paid it then you have to because they didn't. It isn't an unfairness, it's the reinstitution of fairness.
Remember that the problem is caused by companies abusing the system but the rules are there because honest companies need to operate.
The real solution would fix the issue while allowing honest companies to work just like they did before. The problem is that software companies are composed almost purely out of intellectual property, that is intangible and hard to really track.