Income derived from Digital Platforms (DPI)

The Model Rules for Reporting by Platform Operators in the digital economy (abbreviated as DPI) is a standard for Automatic Exchange of Information between tax authorities on income derived from Digital Platforms. The objectives of the Model Rules are, among others, to assist taxpayers by easing their burden on acquiring information on and reporting their taxable income, promote standardization on reporting rules between jurisdictions and collection of information relative to tax administrations.

A regulation on the obligations for Reportable Digital Platform Operators came into force on 1 January 2025. According to the rules, Reportable Platform Operators in Iceland are required to notify Iceland Revenue and Customs about their platform within 8 days from the date of the regulation entering into force or within 8 days from the opening of the digital platform.

Form RSK 5.52 Reportable Platform Operator Notification

According to the rules, Reportable Platform Operators in Iceland are required to collect information on sellers and distributed income on their platforms and submit this information to Iceland Revenue and Customs. The deadline for submitting reports for income distributed to sellers in 2025 is 20 January 2026. Information that Reportable Platform Operators shall collect is listed in Article 23 of Regulation 1664/2024.

Iceland has signed the Multilateral Competent Authority Agreement (MCAA) on DPI. The Agreement is a product of the OECD. Iceland exchanges information on income derived from Digital Platforms bilaterally with other jurisdictions that have notified that legal instruments are in place as stated in Section 7 of the MCAA. Information on income derived from Digital Platforms by persons residing in other jurisdictions will be sent from Iceland to the tax authorities in that person's taxable residence jurisdiction. Other tax authorities send information on income from Digital Platforms in their jurisdiction, derived by Icelandic taxable residents, to Iceland Revenue and Customs.