Taxes Consolidation Act 1997 section 835DA

OECD Pillar One - Amount B

Section 835DA implements the OECD Pillar One "Amount B" simplified transfer pricing approach for certain marketing and distribution arrangements involving covered jurisdictions.

• Ireland committed, from 1 January 2025, to respect Amount B pricing outcomes for qualifying arrangements where a covered jurisdiction (one of 66 low- and middle-income countries) applies the OECD Amount B rules and has a bilateral tax treaty with Ireland.
• Qualifying arrangements are buy-sell distribution or sales agency/commissionaire arrangements involving wholesale distribution of goods to independent parties, provided they can be reliably priced using a one-sided transfer pricing method with the distributor or agent as the tested party.
• Arrangements are excluded where they involve non-tangible goods, services, or commodities; where significant non-distribution activities cannot be separately evaluated; or where the tested party's annual operating expenses fall below 3% or exceed 30% of its annual net revenues.
• Where the section applies, it modifies the operation of the transfer pricing rules in sections 835C, 835D, and 835G, requiring use of the Amount B methodology, supplemented documentation in the local file, and notification to Revenue by the tax return filing deadline.