US Treasury Pushing for Mandatory Global Transfer Pricing Rules

An OECD measure to simplify transfer pricing for certain transactions should be mandatory, rather than optional, a US Treasury official said Wednesday.

The measure, released Monday by the Organization for Economic Cooperation and Development, details the progress made on simplifying transfer pricing methods for marketing and distribution transactions of tangible goods known as Amount B.

It provides an “optional, simplified and streamlined approach” that countries can choose to apply in their jurisdictions.

While the report on Amount B “provides much-needed simplification and tax certainty” around these transactions, negotiators’ work is not done, the Treasury official said in a statement to ...