Large multinational enterprises (MNEs) in the extractives industry may be interested in the Organization for Economic Cooperation and Development (OECD)’s latest consultation on its two-pillar approach to address tax challenges from the digitalization of the economy. The OECD has now released a new consultation paper on its draft model rules for domestic legislation on the extractives exclusion, as part of its proposal to ensure certain MNEs pay tax in countries where they have consumer-facing activities but do not have a physical presence. Specifically, the OECD is asking for feedback on draft model rules for the extractives exclusion under “Amount A” of Pillar One. Affected parties are asked to provide comments on these rules by April 29, 2022.

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