US, Some Developing Nations Aligned on Transfer Pricing Rules

The US and some developing countries are “very well-aligned” with one another on a set of rules that seek to simplify transfer pricing for certain transactions, a top US Treasury official said Monday.

Michael Plowgian, Treasury deputy assistant secretary of international tax affairs, said a “critical issue” for the US on reaching an agreement on a part of the global tax pact is Amount B.

The international tax pact, agreed to by over 140 countries in 2021, is made up of two main parts: a reallocation of large multinational companies’ residual profits, known as Pillar One, and a 15% ...