1. 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. 2. 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”, contained in Part I of this note), to support the annual automatic exchange of information by the residence jurisdiction of the platform operator with the jurisdictions of residence of the sellers (and, with respect to transactions involving the rental of immovable property, the jurisdictions in which such immovable property is located), as determined on the basis of the due diligence procedures . 3. 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, contained in Part II of this note) that would allow such jurisdictions to implement the Model Rules with an extended scope. In this light, the DPI MCAA foresees the possibility to either send information on the basis of the scope of the Model Rules or to cover both the scope of the Model Rules and the extended scope. 4. 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.
