OECD/G20 Inclusive Framework publishes new multilateral agreement to address the tax challenges of globalisation and digitalisation

On 11 October 2023, the OECD/G20 Inclusive Framework published a new multilateral agreement to address the tax challenges of globalisation and digitalisation.

Specifically, the multilateral agreement concerns the implementation of Amount A of the first pillar (Pillar 1). Pillar 1 Amount A coordinates a reallocation of taxing rights to market states in relation to a portion of the profits of the largest and most profitable multinational enterprises (MNEs). It is also intended to prevent the spread of taxes on digital services and similar measures or lead to their abolition, ensure mechanisms to avoid double taxation and increase stability and security in the international tax system.

The press release and additional documents are available here.