OECD Issues Model Pact to Use Simpler Transfer Pricing Rules (1)

The OECD on Thursday published a template countries can use to honor new rules that would simplify transfer pricing methods for certain transactions.

The Model Competent Authority agreement, according to the Organization for Economic Cooperation and Development, is meant to help jurisdictions with few resources administer Amount B, a framework included in the international tax deal that would simplify the way companies value marketing and distribution transactions of tangible goods between related entities.

The Amount B framework is meant to provide assistance to countries that may not have the administrative capacity to determine the revenue owed from transfer pricing. ...