Pillar 1 refers to a framework established by the OECD to address the tax challenges arising from the digitalization of the economy. It aims to ensure that multinational enterprises (MNEs) pay taxes where they have significant consumer interactions, regardless of their physical presence in that jurisdiction. This is particularly relevant for tech companies that operate globally but may not have a traditional business footprint in every country. The key components of Pillar 1 include the allocation of taxing rights over profits to market jurisdictions and the establishment of a new tax framework. This approach seeks to create a fairer distribution of tax revenues among countries, helping to reduce tax avoidance and ensure that all countries can benefit from the economic activities of MNEs.