Anyo\u00adne who ear\u00adns money via digi\u00adtal plat\u00adforms \u2013 whe\u00adther as a land\u00adlord on a boo\u00adking plat\u00adform, a sel\u00adler on an online mar\u00adket\u00adplace or a free\u00adlan\u00adcer on a job-matching site \u2013 has long been the focus of the tax aut\u00adho\u00adri\u00adties. The Ger\u00adman govern\u00adment is now plan\u00adning to extend the auto\u00adma\u00adtic exch\u00adan\u00adge of infor\u00adma\u00adti\u00adon on such inco\u00adme to include fur\u00adther count\u00adries out\u00adside the EU. A draft bill to this effect has been tabled.<\/p>\n\n\n\n
Within the Euro\u00adpean Uni\u00adon, tax aut\u00adho\u00adri\u00adties have been auto\u00adma\u00adti\u00adcal\u00adly exchan\u00adging data on inco\u00adme gene\u00adra\u00adted via online plat\u00adforms for some time now. This is based on the so-cal\u00adled EU Mutu\u00adal Assis\u00adtance Direc\u00adti\u00adve. So, if a plat\u00adform such as Airbnb or eBay reports data on a sel\u00adler resi\u00addent in Ger\u00adma\u00adny to the rele\u00advant aut\u00adho\u00adri\u00adty, this infor\u00adma\u00adti\u00adon is also pas\u00adsed on to the Ger\u00adman tax office.<\/p>\n\n\n\n
Until now, howe\u00adver, this had only appli\u00aded in rela\u00adti\u00adon to EU Mem\u00adber Sta\u00adtes. The new Act is inten\u00added to trans\u00adpo\u00adse the so-cal\u00adled Mul\u00adti\u00adla\u00adte\u00adral Agree\u00adment of 22 June 2021 into Ger\u00adman law. Ger\u00adma\u00adny signed this agree\u00adment, which was deve\u00adlo\u00adped under the auspi\u00adces of the OECD, in Novem\u00adber 2024. It obli\u00adges the par\u00adti\u00adci\u00adpa\u00adting sta\u00adtes to auto\u00adma\u00adti\u00adcal\u00adly exch\u00adan\u00adge tax-rele\u00advant infor\u00adma\u00adti\u00adon on plat\u00adform reve\u00adnues with third count\u00adries as well.<\/p>\n\n\n\n
Until now, plat\u00adforms based out\u00adside the EU had faced the pro\u00ads\u00adpect of a dou\u00adble bur\u00adden: report\u00ading obli\u00adga\u00adti\u00adons in their coun\u00adtry of estab\u00adlish\u00adment, cou\u00adpled with their own regis\u00adtra\u00adti\u00adon and report\u00ading obli\u00adga\u00adti\u00adons within the EU. The new agree\u00adment pro\u00advi\u00addes a solu\u00adti\u00adon to this. If a third-coun\u00adtry plat\u00adform ful\u00adfils equi\u00adva\u00adlent report\u00ading obli\u00adga\u00adti\u00adons in its home coun\u00adtry and the\u00adre is an effec\u00adti\u00adve sys\u00adtem of infor\u00adma\u00adti\u00adon exch\u00adan\u00adge with EU Mem\u00adber Sta\u00adtes, the requi\u00adre\u00adment for dual report\u00ading is waived.<\/p>\n\n\n\n
For tax\u00adpay\u00aders in Ger\u00adma\u00adny, this means one thing abo\u00adve all else in prac\u00adti\u00adce: inco\u00adme gene\u00adra\u00adted via digi\u00adtal plat\u00adforms is incre\u00adasing\u00adly coming to the atten\u00adti\u00adon of the tax aut\u00adho\u00adri\u00adties. In future, this will no lon\u00adger app\u00adly sole\u00adly to EU-rela\u00adted tran\u00adsac\u00adtions, but also to tran\u00adsac\u00adtions car\u00adri\u00aded out via plat\u00adforms based in count\u00adries such as the United King\u00addom, Cana\u00adda or other OECD mem\u00adber states.<\/p>\n\n\n\n
The draft bill express\u00adly sti\u00adpu\u00adla\u00adtes that the exch\u00adan\u00adge of data is sub\u00adject to com\u00adpre\u00adhen\u00adsi\u00adve data pro\u00adtec\u00adtion requi\u00adre\u00adments. The infor\u00adma\u00adti\u00adon trans\u00admit\u00adted is sent exclu\u00adsi\u00adve\u00adly to the tax aut\u00adho\u00adri\u00adties of the respec\u00adti\u00adve coun\u00adtry and is not published.<\/p>\n\n\n\n
Anyo\u00adne who regu\u00adlar\u00adly ear\u00adns inco\u00adme via digi\u00adtal plat\u00adforms and has not yet declared this, or has not declared it in full, on their tax return should fol\u00adlow deve\u00adlo\u00adp\u00adments clo\u00adse\u00adly. Inter\u00adna\u00adtio\u00adnal aut\u00adho\u00adri\u00adties are coope\u00adra\u00adting ever more clo\u00adse\u00adly in the detec\u00adtion of tax eva\u00adsi\u00adon. Anyo\u00adne who is unsu\u00adre as to whe\u00adther and how such inco\u00adme should be trea\u00adted for tax pur\u00adpo\u00adses should seek tax advice at an ear\u00adly stage to avo\u00adid having to pay back taxes or facing cri\u00admi\u00adnal tax law consequences.<\/p>\n\n\n\n
The draft bill is curr\u00adent\u00adly going through the par\u00adlia\u00admen\u00adta\u00adry pro\u00adcess. It can\u00adnot come into force until it has recei\u00adved final appr\u00adoval from the Bundestag.<\/p>\n\n\n\n