Fiscal Reform in the Digital Era: Implementation of OECD Pillar One

This Policy Brief was first published in https://t20ind.org


Globalisation and digitalisation have boosted economic activity while simultaneously posing challenges to international taxation. To solve the tax challenges arising from digitalisation, OECD has initiated Pillar One, to reformulate profit allocation rules by taxing companies in jurisdictions where they generate profits. Pillar One is estimated to increase tax revenue global income by US$220 billion, which is relatively low compared to the legal impacts it brought to developing states. Continuous global coordination is necessary to ensure that the rules are swiftly implemented. Regular technical assistance by the G20 and OECD, as well as enhancement of regional cooperation, are crucial to develop a common understanding of Pillar One implementation, ease compliance burdens, and mitigate high administrative costs.

Latest Policy Briefs

Register for Updates

Would you like to receive updates on the Global Solutions Initiative, upcoming events, G7 and G20-related developments and the future of multilateralism? Then subscribe here!

1 You hereby agree that the personal data provided may be used for the purpose of updates on the Global Solutions Initiative by the Global Solutions Initiative Foundation gemeinnützige GmbH. Your consent is revocable at any time (by e-mail to [email protected] or to the contact data given in the imprint). The update is sent in accordance with the privacy policy and to advertise the Global Solutions Initiative’s own products and services.