On Feb. 19, 2024, the Organization for Economic Cooperation and Development (OECD) amended its transfer pricing guidelines to include “Amount B,” a standardized approach to determine the arm’s length remuneration for certain marketing and distribution activities. The updated guidelines apply for fiscal years beginning on or after Jan. 1, 2025. In December 2024, the OECD issued new tools to implement Amount B. The availability of the streamlined “Amount B” approach will vary by jurisdiction, as not every member of the OECD’s Inclusive Framework (IF) has adopted it. Thus, implementation and application may differ by jurisdiction.
OECD’s Amount B: Simplified Transfer Pricing for Routine Marketing and Distribution Activities
