The taxation of the digital economy is one of the most hotly debated fields in transfer pricing. NERA Affiliated Consultant Dr. Alexander Voegele and Associate Director Philip de Homont discuss the regulations associated with the taxation and audit procedures of digital activities in Germany. The article appears in Bloomberg’s summer edition of Transfer Pricing for the Individual Practitioner.

The authors provide a country overview for Germany and include information on the following topics:

• German tax authorities’ approach to specific taxation of digital activities;
• Challenges German tax authorities face in the development and implementation of measures related to the taxation of the digitalized economy;
• Practical advantages and challenges of approaches outlined in the OECD’s Public Consultation Document, Addressing the Tax Challenges of the Digitalisation of the Economy; and
• Reaction of German multinational enterprises in light of future regulatory uncertainty.

For more information on NERA’s Global Transfer Pricing Practice or for questions on the topics covered in the article, please contact the authors.