The EU Digital Levy is Dead: Long Live a Pillar One Contribution?

On 22 December 2021, the European Commission published its Proposal for “next generation of own resources” to finance the EU-response to the COVID-19 pandemic, but this did not include a new EU digital levy. Instead, a new EU contribution is being requested from Member States based on a reallocation of taxable profits under the future Pillar One regime. This note comments on the 22 December 2021 Proposal and the future of the EU digital levy.