Introduction

One of the primary responsibilities of tax authorities worldwide is to ensure that the right amount of tax is paid by individuals and businesses. However, in today’s increasingly globalized and digital world, this task has become more complex. The rise of online platforms facilitating the exchange of services, goods, assets, and money creates challenges for enforcing fair and effective taxation across borders.

To address these challenges, international collaboration and unified standards have become essential.

The Role of the OECD

The Organisation for Economic Co-operation and Development (OECD) plays a pivotal role in this global effort. As an international organization, the OECD develops evidence-based policies and standards to support tax transparency, combat tax evasion and avoidance, and foster international cooperation between tax authorities.

“We work closely with policy makers, stakeholders and citizens to establish evidence-based international standards and to find solutions to social, economic and environmental challenges... Our core aim is to set international standards and support their implementation – and help countries forge a path towards stronger, fairer and cleaner societies.”— OECD Mission Statement

To learn more, visit: https://www.oecd.org/en/about.html

A Milestone in Tax Cooperation: The Seville Agreements

Date: 10 November 2022 During the 15th Plenary Meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes held in Seville, 28 countries and jurisdictions took a significant step toward global tax transparency by signing two landmark agreements developed by the OECD.

Automatic Exchange of Digital Platform Income

(Digital Platforms MCAA)

A total of 22 jurisdictions signed the Multilateral Competent Authority Agreement (MCAA) based on the OECD’s Model Rules for Reporting by Digital Platforms.

Scope of the Agreement

The agreement requires digital platform operators to collect and report income data of sellers who earn through:

Gig work (e.g., ride-hailing, freelance services)
Short-term accommodation rentals
Transportation servicesAdditionally, an optional module allows jurisdictions to extend the scope to include:
Sale of goods
Rental of means of transportation (e.g., car or bike sharing)

How It Works

Platform operators collect relevant income and identity data from sellers.
This data is reported to the local tax authority in the platform’s country of operation.
The data is then automatically exchanged with the tax authority in the seller’s country of residence.

Why It Matters

Ensures accurate taxation of cross-border, platform-based income.
Helps close the tax gap by bringing hidden income streams into the formal tax system.
Promotes fair competition between traditional and digital businesses.

My Perspective

As a developer working on tax compliance systems within SAP environments, I view this development as both necessary and timely. The digital economy is rapidly evolving, and traditional tax infrastructures struggle to keep pace. By introducing standardized international reporting rules, the OECD provides a clear, coordinated path for governments and platform operators alike.

However, these changes also bring technical and operational challenges—especially for multinational enterprises, platform-based businesses, and ERP teams responsible for implementation. From data collection and classification to formatting and secure transmission, each step requires careful system design and compliance readiness.

In future posts, I will explore how such standards (like MRDP and CRS) can be technically implemented in SAP systems, ensuring data accuracy and automated reporting across jurisdictions. If you earn income through digital platforms or are integrating these processes within ERP systems like SAP, it is essential to start preparing for these new regulations now.

Enhancing Tax Transparency in the Digital Age: OECD’s Role and Global Collaboration