OECD Sets Out Global Transfer Pricing Rules in New Report (2)

A new OECD report breaks down rules to simplify transfer pricing methods for certain transactions under part of the 2021 global tax deal known as Amount B.

The rules seek to simplify transfer pricing methods for baseline marketing and distribution transactions. Transfer pricing refers to the way in which companies value their transactions between related entities.

“This framework is expected to reduce transfer pricing disputes, compliance costs, and enhance tax certainty for tax administrations and taxpayers alike,” the Organization for Economic Cooperation and Development said in the report issued Monday. “Low-capacity jurisdictions facing limited resources and data availability will especially ...