Key Updates on OECD Pillar 1 Amount B from the Netherlands

The Dutch State Secretary for Finance just released important guidance on OECD Pillar 1 Amount B.

On 4 December 2024, the Dutch State Secretary for Finance released a Decree in which the consequences of OECD Pillar 1 Amount B for Dutch tax purposes are mentioned. The Decree enters into force on 1 January 2025.

OECD Pillar 1 Amount B determines the remuneration for baseline marketing and distribution activities based on certain qualitative and quantitative criteria. The application of Amount B is optional for jurisdictions.

---

The main attention points from the Dutch Decree are:

• Amount B not applicable: Amount B will not be applied to Dutch taxpayers that perform routine marketing and distribution activities in the Netherlands.
• Avoiding double taxation: If another jurisdiction applies Amount B on a transaction involving a Dutch group company, then Netherlands will take steps to avoid double taxation if:
  • The other jurisdiction is qualified as “covered jurisdiction” by the OECD for the application of Amount B.
  • The other jurisdiction has implemented Amount B in its domestic legislation for the tax year concerned.
  • A tax treaty applies between the Netherlands and the other jurisdiction.
• In such cases, the Dutch tax administration will make corresponding adjustments to avoid double taxation and refrain from corrections when Amount B is applied correctly.
• The Dutch tax administration will not apply corrections regarding remuneration of routine marketing and distribution activities in a covered jurisdiction if Amount B is applied correctly.

The above measures also extend to profit allocation to permanent establishments.

---

What this means for businesses

As the Dutch tax administration prepares for the implementation of Amount B, multinational groups should evaluate their existing transfer pricing policies to ensure they align with the new guidance. Early planning will help mitigate risks.

For more information on this and related developments, feel contact us.

---

Want to stay up to date on the latest in transfer pricing?

• Listen to The Transfer Pricing Method Podcast here.  
• Subscribe to our newsletter for key transfer pricing and tax updates here.   
• Explore the latest transfer pricing news and blogs here.

Share this article: