OECD publishes consolidated report on Amount B

The OECD has published a consolidated report which incorporates the agreed materials on Amount B released by the Inclusive Framework between February and December 2024. In 2021 the OECD agreed a simplified and streamlined approach to applying the arm’s length principle to in-country baseline marketing and distribution activities. The new report contains guidance on ‘special considerations for baseline distribution activities’ which is incorporated into the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2022 as an Annex to Chapter IV.

Jurisdictions may opt to apply this approach to qualifying transactions of eligible baseline distributors. The guidance outlines a three-step process to determine a return on sales for in-scope distributors and includes considerations for documentation transitional issues and tax certainty.