Countries are deciding the key design features of the part of the 2021 global tax pact that aims to streamline transfer pricing, a Treasury official said.
“Amount B” of the 137-country agreement aims to reduce transfer pricing disputes and give both companies and tax authorities—particularly in developing countries—more certainty about how much tax is owed when a company performs routine marketing and distribution activities.
That would be “a win-win for taxpayers and tax authorities,” said Itai Grinberg, Treasury’s deputy assistant secretary for multilateral tax, speaking Tuesday at a Tax Executives Institute event.
There’s a “hard but doable path” to ...