Among the possible reforms of the taxation system of multinational companies, unitary taxation is regularly highlighted as an alternative to the current system. In addition, the Pillar 1 of the OECD negociations proposes to introduce the allocation of taxing rights for destination countries for a portion of firms’ global profits (so‐called Residual Profit Allocation). In this focus, Samuel Delpeuch and Sébastien Lafitte recall the main principles of a unitary system, identify the theoretical effects on corporate behavior, and draw on empirical analysis of North American experiences (Canada and the United States) to discuss its practical application.

To read the focus, click here Focus n° 37