Pillar 1 (United States)

Pillar 1 refers to a framework developed by the OECD to address how multinational companies are taxed in an increasingly digitalized global economy. Essentially, it aims to ensure that these companies pay taxes where they have substantial consumer interaction and business activity, rather than just where they have physical offices. This initiative seeks to allocate more taxing rights to countries where companies generate revenue, even if they have no traditional presence there. The goal is to create a fairer international tax system that adapts to modern business practices and reduces tax avoidance.