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. Reportable Platform Operators are required to collect
information on sellers and distributed income on their platforms and submit
this information to their tax administration in a standard form.
Iceland has signed the Multilateral Competent Authority Agreement (MCAA) on DPI. The Agreement is a product of the OECD. Iceland will exchange 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 (legal or natural) residing in other jurisdictions will be sent from Iceland to the tax authorities in that person’s taxable residence jurisdiction. Other tax authorities will likewise send information on income from Digital Platforms in their jurisdiction, derived by Icelandic taxable residents, to Iceland Revenue and Customs.
Information on DPI from the OECD
Model Reporting Rules for Digital Platforms (2021)
Model Rules for Reporting by Digital Platform Operators XML Schema (2022)
Model Reporting Rules for Digital Platforms: Frequently Asked Questions (October 2023)
