Amount B implementation 2026: country tracker and OECD automation roadmap
Dr. Raffaele Petruzzi·PhD · LL.M. · M.Sc.TL;DR
Amount B (Pillar One simplified approach) prices baseline marketing and distribution at a fixed return matrix instead of a full benchmarking study. Optional for taxpayers; binding on jurisdictions that elect in. Early adopters include Argentina, Costa Rica, several African states; EU member states have not yet elected. Automation tool launches H2 2026.
What is Amount B and why does it matter?
Amount B is the simplified, formula-based pricing approach for baseline marketing and distribution activities, introduced under OECD Pillar One Statement of February 2024. It replaces a full TNMM benchmarking study with a fixed return matrix derived from industry, factor intensity, and the distributor's operating expense ratio. Optional for taxpayers; binding for jurisdictions that elect in.
The intent is to reduce TP compliance cost for the routine marketing-and-distribution archetype, which accounts for a disproportionate share of TP disputes despite being economically straightforward. Amount B does not replace TP rules — it offers a simplified track. Taxpayers can still elect a full benchmarking study where the simplified return materially understates the entity's contribution.
What transactions fall within Amount B scope?
In-scope: 'baseline' wholesale distribution of tangible goods, including agency and commissionaire structures. Out-of-scope: services, intangibles, commodities, retail distribution, financial transactions. Within scope, three quantitative gates apply: the distributor's three-year average operating expense / sales ratio must be 3%–30%; the distributor must not perform non-distribution functions exceeding a de minimis threshold; the goods must be sold to unrelated parties.
- In scope — routine wholesale distribution of physical goods to unrelated end-customers, including limited-risk distributors, low-risk commissionaires, and sales agents with similar functional profiles.
- Out of scope — services, intangibles licensing, commodity trading, retail-tier distribution, financial transactions, and 'non-baseline' distributors who carry inventory risk, brand investment, or product customisation functions.
- The expense gates — operating expense / sales ratio between 3% and 30% (three-year average), de minimis non-distribution functions, and a controllable-risk profile consistent with a routine distributor.
Which countries have adopted Amount B as of 2026?
Early adopters as of mid-2026 include Argentina, Costa Rica, several African Tax Administration Forum (ATAF) member states (notably Kenya, South Africa as pilots), and a small group of Latin American economies. EU member states have signalled cautious openness but have not formally elected in pending the still-stalled EU TP Directive. The United States has not adopted.
The early adopter pattern reflects Amount B's primary economic intent: simplifying TP compliance in jurisdictions where TP administration capacity is the binding constraint. For developed-economy taxpayers, Amount B becomes useful primarily as a defensive choice in disputes with early-adopter jurisdictions — the simplified return becomes the floor in MAP discussions.
What is the OECD Amount B automation tool?
An OECD-administered calculator that takes the distributor's industry classification, factor intensity, and operating expense ratio and returns the Amount B target operating margin. Launched in beta in early 2026; full release scheduled for H2 2026. Designed to remove ambiguity in applying the pricing matrix and reduce dispute risk on the calculation itself.
The automation tool is not a substitute for proper functional analysis — the taxpayer remains responsible for confirming that the entity falls within Amount B scope and selecting the correct industry classification. But for in-scope distributors, the tool eliminates the most common dispute trigger: arithmetic disagreement between the taxpayer's TP study and the authority's reconstruction.
How defensible is an Amount B-based price in audit?
In an adopting jurisdiction: highly defensible — the authority is bound to accept the Amount B return for in-scope entities. In a non-adopting jurisdiction (most of the EU as of 2026): the Amount B return is one data point in a TNMM defence, but the taxpayer must also produce a conventional benchmarking study. The cross-border audit risk is the scope question: is the entity actually 'baseline'?
Pre-2025 commissionaire arrangements in particular are facing scope challenges. Authorities argue that commissionaires performing market intelligence, customer relationship management, or product-launch coordination exceed the 'baseline' threshold and should be priced under conventional TNMM. The 2025–2026 dispute pattern suggests the scope question, not the Amount B calculation, is where the audit risk concentrates.
Can Amount B apply to SaaS and digital services?
No. Amount B is explicitly limited to wholesale distribution of tangible goods. SaaS, digital licensing, cloud infrastructure, and digital services all fall outside scope. The OECD has signalled future work on a digital-services equivalent but no formal proposal exists as of mid-2026.
The practical consequence for tech groups is that the routine-distribution simplification benefit is not available, and conventional TNMM benchmarking remains the primary defence for in-country sales and marketing entities. This is one of the gaps OECD work programmes are likely to address through 2026–2027.
What should I monitor through the rest of 2026?
Three tracks: (1) the country adoption list, especially EU member states' positions as the EU TP Directive discussions resume; (2) the OECD automation tool's H2 2026 full release and any scope refinements; (3) the early case law from adopting jurisdictions on the scope question — whether routine commissionaires get pulled inside the simplified regime or remain in conventional TNMM territory.
For groups with material distribution presence in early-adopter jurisdictions, the planning move in late 2026 is to model both Amount B and conventional TNMM outcomes for each in-scope entity and document the choice. For groups in EU-only structures, the practical impact of Amount B in 2026 is limited but the policy direction matters for 2027–2028 planning.
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Can I claim Amount B for a related contract manufacturer?
No. Contract manufacturing is explicitly outside Amount B scope. The simplified approach applies to wholesale distribution of tangible goods, not to manufacturing arrangements regardless of risk profile. Contract manufacturers continue to be priced under conventional cost-plus or TNMM methodologies.
Does Amount B override existing APAs?
No. Existing APAs remain in force on their stated terms. Amount B applies to transactions outside the APA scope or to transactions covered by APAs that have expired and require renewal. Groups should not unilaterally switch covered transactions to Amount B during an APA period.
What's the binding nature of Amount B in adopting jurisdictions?
Once a jurisdiction adopts Amount B, the authority must accept the simplified return for in-scope transactions as the arm's length result. The taxpayer can still elect to apply conventional TP, but cannot be forced into the simplified return. In non-adopting jurisdictions, Amount B has no binding effect.
How is Amount B different from the LVAS safe harbour?
The LVAS safe harbour applies to intra-group services priced at cost plus 5%. Amount B applies to distribution of goods to unrelated customers, priced on an operating-margin matrix. Different transaction types, different methodologies, different thresholds. They can coexist in a single group's TP architecture.
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