Digital Services and Taxation: Transfer Pricing Challenges in North America

Abstract

The rapid evolution of digital services has revolutionized global business practices, presenting unique taxation challenges, particularly in North America. This paper examines the complexities of transfer pricing in the context of digital services, focusing on the implications for multinational corporations (MNCs) operating across jurisdictions. As traditional tax frameworks struggle to adapt to digital business models, the need for a coherent approach to transfer pricing becomes imperative. This study explores existing regulations, case studies, and proposals for reform while identifying key challenges faced by tax authorities and businesses alike. Through a comprehensive analysis, this paper aims to contribute to the ongoing discourse on effective taxation strategies for digital services in North America.