To provide you a brief introduction to the future OOP scenario in taxation domain, we kindly ask you to watch the following video. Alternatively you may click through the subsequent slideshow, which contains subtitles to explain the scenario interactions. Moreover, the textual description and posters could be found under the interactive slideshow.
Andreas comes from Greece where he was born, raised and became occupationally active before deciding to take advantage of a good work opportunity in Austria. According to the national legislation of Greece and Austria and to the bilateral Double Tax Agreement among these countries (Greek-Austrian DTA, 2008), Andreas can be considered a tax resident of Greece, and he has to pay income tax in both countries, i.e. pay tax to Greece on his worldwide income and tax to Austria only on the income earned there. However, Andreas is entitled to get a refund from Greece for the double tax paid.
The scenario commences when Andreas starts working for the new employer in Austria (1). Andreas uses eID to log in to employer’s information system and retrieve the employment contract (2). Andreas then submits the contract to the Greek Ministry of Finance attached to an online application for certifying tax residency in Greece according to the provisions of the Austrian-Greek DTA (3). To do this Andreas logs in to the Hellenic Online Tax System (TAXIS) using eID. An officer at the Greek Ministry of Finance considers Andreas’ application in relation to legislation, the Greek-Austrian DTA in place, and the data already stored for Andreas’ financial and other circumstances and certifies that Andreas is a tax resident of Greece. This decision is communicated both to Andreas and to the Austrian Ministry of Finance (4). At the same time, the officer sends Andreas’ personal data to the Austrian Ministry of Finance.
As soon as the fiscal year ends, each employer provides employees’ salary data to the respective Ministry of Finance (5). As Andreas started working abroad in the middle of the fiscal year, two employers in two different countries are involved. Andreas’ employer in Greece provides relevant salary data to the Ministry in Greece, and Andreas’ employer in Austria provides relevant salary data to the Ministry in Austria. The Austrian Ministry of Finance calculates Andreas’ tax based only on income earned in Austria (6a). It then notifies Andreas on the income tax through the FinanzOnline service (FON) which Andreas needs to check and accept using his eID from his home country (6c, 6d). At the same time, the Austrian Ministry of Finance communicates Andreas’ tax on income earned in Austria to the Greek Ministry of Finance, where Andreas’ tax residency is established (6b). The Greek Ministry of Finance integrates all available data (i.e. Greek employers’ data, data sent by the Austrian Ministry and other sources)(7a) and issues Andreas’ annual tax declaration in a pre-filled format in TAXIS, which Andreas needs to check and accept (7b, 7c). Since Andreas’ tax on income earned in Austria was previously communicated to the Greek Ministry, the overall tax calculated for Andreas in Greece includes the respective tax deduction. Using his eID, Andreas settles his tax declaration in TAXIS fully online.
The digital data transmission between the employers and the Ministries is done via secure transport protocol using an e-delivery service. Two enabling infrastructures facilitate this transmission in Greece: the Greek Interoperability Centre and the Greek Public Key Infrastructure (PKI).
The digital data transmission between the two Ministries is done via secure transport protocol using an e-delivery service. The digital transmission of Andreas’ personal and taxation data between the two Ministries is based on the strategies for the legal frameworks (including GDPR and eIDAS) that provide the legal basis for this seamless OOP implementation.
For the mapping of data on income and tax, semantic standards and vocabularies at European level must be developed to facilitate implementation of European-wide mappings and translation services.