In Bloomberg’s Spring/Summer 2020 edition of Transfer Pricing for the Individual Practitioner, NERA Director Philip de Homont was invited to answer questions about the impact of the COVID-19 pandemic on the German economy. Mr. de Homont describes similarities and differences between the 2008 financial crisis and the current pandemic as they relate to the practice of transfer pricing in Germany. He explains why the nature of today’s crisis is unique, with implications for transfer pricing that will vary strongly by industry.

Mr. de Homont also analyses the impact of the COVID-19 pandemic on low-risk entities in Germany and highlights MNEs in the digital and consumer goods industries who are experiencing or likely to experience increased business opportunities despite the current pandemic. He also suggests strategies these entities should be mindful of with regard to their transfer pricing models.