Transfer pricing: new to the OECD Guidelines

The Public Consultation Until 1 September, interested stakeholders were able to submit their comments on the document, which is not yet final, on the simplified transfer pricing regime for transactions involving so-called 'baseline' marketing and distribution activities. The document Two Pillar Solution to Address the Tax Challenges arising from the Digitalization of the Economy, prepared by the joint work of Working Party 6 and MAP Forum, was published on 17 July following the 15th meeting of the Inclusive Framework BEPS on 10 - 12 July. The document contains a number of open issues and work is expected to continue at least until the end of 2023. The Amount B Amount B is part of the so-called “Pillar One” for the implementation plan of the two-pillars solution that the OECD is developing to address the challenges of the digital economy. Recipients of Amount B are companies that operate primarily as wholesale distributors, whose activities are basic and do not make unique and valuable contributions. If retail activity is also carried out, this must be of a residual nature, with a maximum threshold of 20 per cent of the distributor's total turnover; Amount B also applies to agents and sales commission agents. The transaction must have such characteristics that it can be reliably valued by applying a one-sided method, with the distrib...