Andreas, a citizen of Country A, accepts a new job in Country B. He applies to the ministry of finance in Country A to certify his tax residency using his digital ID. The ministry officer certifies that Andreas remains a tax resident of Country A, meaning he pays taxes on worldwide income to Country A and only income in Country B to that country. Data on Andreas' salary and taxes paid is securely shared between the two countries to calculate his overall tax owed.

1. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Ministry of
Finance
Employer A Employer B
Employers’ Internal
Environment
Andreas is a citizen of country A and works for an employer in the same country.

2. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Ministry of
Finance
Employer A Employer B
Employers’ Internal
Environment
Andreas
Works abroad1
At some point, Andreas decides to accept a job opportunity by an employer situated in country B.

3. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Ministry of
Finance
Employer A Employer B
Employers’ Internal
Environment
Andreas
Works abroad1
2
Andreas acquires the employment contract from his new employer.

4. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
Digital ID
Ministry of
Finance
Using his eID, Andreas submits an online application to the ministry of finance in country A in
order to certify his tax residency. His employment contract is attached to this application.

5. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
Records
Digital ID
Ministry of
Finance
An officer at the ministry of finance considers Andreas’ application in relation to legislation, the
Double Tax Agreement among the two countries, and the data already stored for Andreas’
financial and other circumstances.

6. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
Records
Digital ID
Ministry of
Finance
The ministry officer certifies that Andreas is a tax resident of country A.

7. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
Records
Digital ID
Ministry of
Finance
This means that Andreas has to pay tax to country A on his worldwide income
and tax to country B only on the income earned there.

8. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
Records
Digital ID
Ministry of
Finance
However, Andreas is entitled to get a refund from country A for the double tax paid.

9. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
4
Records
Digital ID
Transfer of tax residence and
personal data
4.1
Ministry of
Finance
The tax residency decision is communicated both to Andreas and to
the ministry of finance of country B. At the same time, the officer sends
Andreas’ personal data to the ministry of finance of country B.

10. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
4
Records
Digital ID
Transfer of tax residence and
personal data
4.1
Ministry of
Finance
At the end of the fiscal year, each employer provides employees’ salary data to the respective
ministry of finance. As Andreas started working abroad in the middle of the fiscal year,
two employers in two different countries are involved.

11. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
4
Records
Digital ID
Transfer of tax residence and
personal data
4.1
5
Ministry of
Finance
5
Andreas’ employer in country A provides relevant data to the ministry in country A,
and Andreas’ employer in country B provides relevant data to the ministry in country B.

12. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
4
Records
Digital ID
Transfer of tax residence and
personal data
4.1
Secure Transport
Protocol
5
Ministry of
Finance
5
Secure Transport
Protocol
The digital data transmission between the employers and the ministries is done via a
secure transport protocol using an e-delivery service or other national infrastructure.

13. Then, the ministry of finance in country B calculates Andreas’ tax based only on income
COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
4
Records
Digital ID
Transfer of tax residence and
personal data
4.1
Secure Transport
Protocol
5
Ministry of
Finance
5
Secure Transport
Protocol
Calculates
tax on
salary5.1
5.2
earned in country B and notifies Andreas on the income tax to be paid.

14. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
4
Records
Digital ID
Transfer of tax residence and
personal data
4.1
Secure Transport
Protocol
5
Ministry of
Finance
5
Secure Transport
Protocol
Calculates
tax on
salary5.1
5.2
6
Transfer of
salary tax
Andreas verifies and pays the tax using his eID from his home country.

15. on income earned in country B to the ministry of finance of country A.
COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
4
Records
Digital ID
Transfer of tax residence and
personal data
4.1
Secure Transport
Protocol
5
Ministry of
Finance
5
Secure Transport
Protocol
Calculates
tax on
salary5.1
5.2
6
Transfer of
salary tax
6.1
At the same time, the ministry of finance in country B communicates Andreas’ tax

16. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
4
Records
Digital ID
Transfer of tax residence and
personal data
4.1
Secure Transport
Protocol
5
Ministry of
Finance
5
Secure Transport
Protocol
Calculates
tax on
salary5.1
5.2
6
Transfer of
salary tax
Standards on
income/tax data
6.1
To map the data on income and tax a semantic mapping tool is used that is based on
previously agreed standards and vocabularies that apply across EU.

17. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
4
Records
Digital ID
Transfer of tax residence and
personal data
4.1
Secure Transport
Protocol
5
Ministry of
Finance
5
Secure Transport
Protocol
Calculates
tax on
salary5.1
5.2
6
Transfer of
salary tax
Secure Transport
Protocol
Standards on
income/tax data
Secure Transport
Protocol
6.1
The digital data transmission between the two ministries is done
via secure transport protocol using an e-delivery service.

18. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
4
Records
Digital ID
Transfer of tax residence and
personal data
4.1
Secure Transport
Protocol
5
Ministry of
Finance
5
Secure Transport
Protocol
Calculates
tax on
salary5.1
5.2
6
Transfer of
salary tax
Secure Transport
Protocol
Standards on
income/tax data
Secure Transport
Protocol
6.1
Calculates
overall tax
7
7.1
The ministry of finance in country A integrates all available data including employers’ data and
data sent by the ministry of country B and issues Andreas’ annual tax declaration
having deducted the tax already paid to country B.

19. COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
4
Records
Digital ID
Transfer of tax residence and
personal data
4.1
Secure Transport
Protocol
5
Ministry of
Finance
5
Secure Transport
Protocol
Calculates
tax on
salary5.1
5.2
6
Transfer of
salary tax
Secure Transport
Protocol
Standards on
income/tax data
Secure Transport
Protocol
6.1
Calculates
overall tax
7
7.1
8
Using his eID, Andreas settles his tax declaration in country A fully online.

20. This simplification scenario is based on current Double Tax Agreements among EU countries,
COUNTRY A COUNTRY B
Physical
transfer
Automatic digital
transaction
Manual digital
transaction
Ministries’ Internal
Environment
Ministries' Information
System
Enablers
Manual
action
Databases
Security
measures
Andreas
Ministry of
Finance
Ministry of
Finance
Andreas
Works abroad1
Employer A Employer B
2
Employers’ Internal
Environment
3
Transfer of tax residence and
personal data
4
5
Records
Calculates
tax on
salary
Calculates
overall tax
Transfer of
salary tax
7
8
eIDAS, EU Strategies, DTAs
and Legal Frameworks
Digital ID
Secure Transport
Protocol
Standards on
income/tax data
Secure Transport
Protocol
Secure Transport
Protocol
Secure Transport
Protocol
Trust and
transparency
5
5.1
5.2
6
4.1
6.1
7.1
that provide the legal basis for the seamless OOP implementation.
as well as on legal frameworks such as the GDPR and eIDAS,