The OECD has released a new report related to the model reporting rules for digital platforms including both an international exchange framework and an optional module for the sale of goods and the rental of means of transportation.
On 29 June 2020, the OECD/G20 BEPS Inclusive Framework approved the model rules for reporting by platform operators with respect to sellers in the sharing and gig economy (the ‘model rules’). Under the Model Rules, operators of digital platforms are required to collect information on the income realised by those offering accommodation, transport and personal services through platforms and to report the information to tax authorities.
The OECD has continued to develop the application of the model rules, and this new report includes:
an international legal framework, the Multilateral Competent Authority Agreement on Automatic Exchange of Information on Income Derived through Digital Platforms (the ‘DPI MCAA’) to enable the exchange of the information gathered under the Model Rules; and
an optional module to extend of the scope of the Model Rules to cover the sale of goods and the rental of means of transportation.
The DPI MCAA enables exchange of information on either the original scope of the Model Rules or the extended scope. It also contemplates non-reciprocal exchange of information, so that a tax authority that has gathered information may exchange that information with another interested tax authority even where that other authority has not activated the DPI MCAA.
The OECD has released a new report related to the model reporting rules for digital platforms including both an international exchange framework and an optional module for the sale of goods and the rental of means of transportation.
On 29 June 2020, the OECD/G20 BEPS Inclusive Framework approved the model rules for reporting by platform operators with respect to sellers in the sharing and gig economy (the ‘model rules’). Under the Model Rules, operators of digital platforms are required to collect information on the income realised by those offering accommodation, transport and personal services through platforms and to report the information to tax authorities.
The OECD has continued to develop the application of the model rules, and this new report includes:
an international legal framework, the Multilateral Competent Authority Agreement on Automatic Exchange of Information on Income Derived through Digital Platforms (the ‘DPI MCAA’) to enable the exchange of the information gathered under the Model Rules; and
an optional module to extend of the scope of the Model Rules to cover the sale of goods and the rental of means of transportation.
The DPI MCAA enables exchange of information on either the original scope of the Model Rules or the extended scope. It also contemplates non-reciprocal exchange of information, so that a tax authority that has gathered information may exchange that information with another interested tax authority even where that other authority has not activated the DPI MCAA.
