Mortar in the Cracks: New Amount B Guidance

In February 2024, the OECD/G20 Inclusive Framework on BEPS (“Inclusive Framework”) published the final Amount B guidance in an agreed consensus document, with reservations from India. The February release was at once a significant achievement — the first final product arising from the Inclusive Framework’s multi-year effort to simplify and streamline transfer pricing for baseline marketing and distribution activities — and something of a headscratcher: the version of Amount B it envisioned was optional for jurisdictions to implement, and was not accompanied by a public announcement on potential adopters. Without sufficient adoption, this version of Amount B could increase uncertainty ...