Mayer Brown has submitted comments to Pillar One, the OECD’s Unified Approach for the taxation of the digital economy. As we previously reported, Pillar One is a groundbreaking and ambitious approach which expands nexus, diverges from the arm’s length standard and will impact most large consumer-facing multinationals and, potentially, non-consumer-facing multinationals, as well.  

Our commentary addressed concerns with respect to the new nexus standard as well as detailed recommendations with respect to “Amount A,” the amount of profit allocable to a country under the proposed expanded nexus rule. We also provided commentary on a number of other issues, including the ancillary use of Amount A and the relationship between Pillar One and existing and proposed digital services taxes and other unilateral measures. (Read our full commentary.)

On November 8, 2019, the OECD released its Public Consultation Document for Pillar Two, its global anti-base erosion proposal (“GloBE”). Mayer Brown will be analyzing the Pillar Two document and will provide our analysis in a subsequent Legal Update.