OECD Publishes Additional Guidance On The S&S Approach (Pillar One Amount B)

On 17 June 2024 the OECD Inclusive Framework (IF) published additional guidance (June Guidance) on the Pillar One Amount B Report of February 2024 (Report). The Report provides an optional simplified and streamlined approach (S&S Approach) to price baseline marketing and distribution activities (BMDA). The key takeaway of the June Guidance is that it provides definitions and lists of 'Qualifying' and 'Covered' Jurisdictions for application of the S&S Approach. The lists of Qualifying Jurisdictions should be used when performing the operating expense cross-check (Operating Expense Cross-Check) and data availability mechanism (Data Availability Mechanism). Following this June Guidance, IF members commit to respect outcomes under the S&S Approach when it is applied by any of the Covered Jurisdictions.