BTAX OnPoint: OECD Releases Report on Pillar One - Amount B

The OECD issued a report outlining the rules under Pillar One - Amount B of its global tax deal.

The framework on Amount B provides a simplified approach to establish a fixed return for baseline marketing and distribution activities, known as the Simplified and Streamlined Approach.

The goals of this approach include reducing transfer pricing disputes and compliance costs while providing increased tax certainty for administrations and taxpayers, but they are complicated by the optional implementation and limited scope of this approach.

This OnPoint discusses:

• How to determine eligible transactions that meet the scoping criteria.
• Applying the Simplified and Streamlined ...