#BGBl. 2025 I Nr. 369Law on the Modernization and Digitization of Combating Undeclared Work
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This German federal law, published in the Bundesgesetzblatt on 29 December 2025, modernizes the legal framework for combating undeclared work (Schwarzarbeit) through enhanced digital tools and data-sharing mechanisms. It expands the powers of customs authorities (Zoll) and other enforcement agencies by enabling real-time digital cross-checks between tax, social security, employment, and immigration databases. The legislation updates multiple laws including the SchwarzArbG, SGB, AO, and GewO to facilitate automated risk analysis, electronic reporting obligations for businesses, and improved inter-agency cooperation. Key goals include reducing administrative burdens while increasing detection rates of illegal employment, bogus self-employment, and related tax and social security fraud.
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Key Changes
- Introduction of mandatory electronic reporting interfaces for employers and contractors to combat bogus self-employment
- Legal basis for automated cross-matching of data from tax authorities, social security, and immigration databases
- Expansion of Zoll's investigative powers with real-time digital access to relevant registers
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Obligations
What this law requires
Enable real-time digital cross-checks between tax, social security, employment, and immigration databases to detect undeclared work
Implement electronic reporting obligations for businesses regarding employment relationships and worker status
Establish inter-agency cooperation mechanisms between customs, tax, social security, and employment enforcement agencies
Conduct automated risk analysis using digital tools to identify instances of undeclared work, bogus self-employment, and related tax and social security fraud
Update compliance systems under SchwarzArbG, SGB, AO, and GewO to align with new digital modernization requirements