Australia Backs Optional Approach to OECD Transfer Pricing Rules

Australia backs countries being able to choose whether or not to opt into the Organization for Economic Cooperation and Development’s new transfer pricing rules for incoming goods according to their own interests, tax officials have said.

An OECD guide to Pillar One-Amount B released last week aims to simplify transfer pricing methods for baseline marketing and distribution transactions of tangible goods. Its approach allows countries to choose whether to apply the methods in their jurisdictions, or not.

“Optionality will allow countries to make decisions based on their interests, needs and capacities, while preserving the internationally accepted arms-length principle,” an Australian ...