German Digital Ad Tax May Be A Concerning New Trend
By Randy Buchanan, Stefan Diemer, Amanda Cooper, Joerg Kaessner and Robert Christoffel ( March 4, 2019, 4:34 PM EST) -- German tax authorities have started utilizing existing income tax rules to impose royalty withholding tax on cross-border digital advertising services. According to news reports, tax authorities in one of the largest German states have ordered some German companies to retroactively pay German withholding tax at a rate of 15 percent on payments to non-German online advertising providers, and other German states are likely to follow suit. To date, there has not been a response from Germany's Federal Ministry of Finance on this issue nor has there been any known case filed in the German tax courts related to the imposition of withholding tax on cross-border online advertising services....
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