Singapore will implement the Simplified and Streamlined Approach (SSA)

Singapore will implement the Simplified and Streamlined Approach (SSA), also known as Amount B, for pricing baseline marketing and distribution transactions on a pilot basis for three years starting from 1 January 2026. Amount B is an optional framework in the OECD Transfer Pricing Guidelines to simplify the application of the arm’s length principle for baseline marketing and distribution activities.

Taxpayers can choose to apply the SSA on qualifying transactions where conditions are met, and the outcome will be treated as providing an arm’s length outcome. Singapore will also respect the outcome determined under the SSA in covered counterparty jurisdictions under certain circumstances.

Singapore believes Amount B is beneficial to businesses as it provides tax certainty to our taxpayers and lowers their compliance costs, supporting a business-friendly environment. The fact that a taxpayer in Singapore chooses to apply the SSA does not impose any expectation on foreign tax authorities to accept the application of SSA.

For more details, readers may refer to Section 19 of IRAS e-Tax Guide on Transfer Pricing.