As part of the ongoing work of the OECD/G20 Inclusive Framework on BEPS (Inclusive Framework) to implement the two-pillar solution to address the tax challenges arising from the digitalisation of the economy and following the agreed Outcome Statement, the OECD is seeking public comments on Amount B under Pillar One.

Amount B provides for a simplified and streamlined approach to the application of the arm’s length principle to in-country baseline marketing and distribution activities, with a particular focus on the needs of low-capacity countries.

The public consultation document outlines the design elements of Amount B and is released in order to obtain inputs from stakeholders on the technical aspects of Amount B. As highlighted in the Outcome Statement, further work will be undertaken on the following aspects:

  • Ensuring an appropriate balance between a quantitative and qualitative approach in identifying baseline distribution activities;
  • The appropriateness of:
    • the pricing framework, including in light of the final agreement on scope;
    • the application of the framework to the wholesale distribution of digital goods;
    • country uplifts within geographic markets; and
    • the criteria to apply Amount B utilising a local database in certain jurisdictions.

Interested parties are invited to submit their comments on this discussion draft with a particular focus on the issues identified above by 1 September 2023. Due to the high volume of anticipated submissions, stakeholders are encouraged to send in their comments in the form of a questionnaire. If this is not possible, comments should be sent by email to [email protected] in Word format. Comments in excess of ten pages should attach an executive summary limited to two pages. Comments should be addressed to the Tax Treaties, Transfer Pricing and Financial Transactions Division, OECD/CTPA.

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