US Guidance on OECD Transfer Pricing Rules Lauded as Flexible

Companies and tax practitioners welcomed new IRS guidance that details how to apply a new OECD transfer pricing framework because it gives businesses the ability to choose whether they’d like to apply the rules.

The US government released a notice Wednesday detailing how to apply the Organization for Economic Cooperation and Development’s Amount B, a framework created to simplify the way that businesses value marketing and distribution transactions of tangible goods between related companies.

According to the guidance, Amount B will apply if a company chooses to use it. Companies can also use Amount B ...