The OECD has published the Model Reporting Rules for Digital Platforms: International Exchange Framework and Optional Module for Sale of Goods. The Model Reporting Rules for Digital Platforms were developed in response to calls for a global reporting framework in respect of activities being facilitated by such platforms, in particular in the sharing and gig economy.

The OECD publication provides the following information on the new reporting rules:

“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.

Since then, the OECD has developed an international legal framework, the Multilateral Competent Authority Agreement on Automatic Exchange of Information on Income Derived through Digital Platforms (the “DPI MCAA”), to support the annual automatic exchange of information by the residence jurisdiction of the platform operator with the jurisdictions of residence of the sellers, as determined on the basis of the due diligence procedures.

Reflecting recent developments and the interest of a number of jurisdictions to permit the extension of the scope of the Model Rules to additionally cover the sale of goods and the rental of means of transportation, the OECD has also developed an optional module, that would allow such jurisdictions to implement the Model Rules with an extended scope.

Further, the DPI MCAA enables sending jurisdictions to provide the information to an interested receiving jurisdiction, even if the receiving jurisdiction did not itself implement the Model Rules. This is to facilitate situations where a jurisdiction has incentives to exchange such information on a non-reciprocal basis. In order to enable such exchanges, the DPI MCAA therefore foresees the possibility to activate the DPI MCAA for receiving information, even in absence of domestic legislation in the receiving jurisdiction, either for the scope of the Model Rules or both the Model Rules and the optional module.” Ends.