Deductibility of software as a service (SaaS) configuration and customisation costs

This interpretation guideline considers the deductibility of the costs the taxpayer incurs in configuring or customising a supplier’s application software in a software as a service (SaaS) arrangement. Depending on the circumstances, the costs may be deductible under the general permission (s DA 1), as development expenditure (s DB 34) or as relating to depreciable intangible property.