Close
When might an employee’s home become a taxable presence for their foreign employer? Taxand’s new Home Office Permanent Establishment Survey examines this question across more than 25 jurisdictions.
With remote and hybrid working now widespread, many employees carry out their duties from home in a country other than the one where their employer is established. Where this creates a permanent establishment, the employer may face corporate tax filing and wage tax withholding obligations, together with the associated compliance requirements.
The survey considers whether, under each participating country’s domestic law and treaty practice, such arrangements may give rise to a permanent establishment for corporate tax purposes, wage tax purposes, or both. It looks at when a home workspace may be treated as a fixed place of business at the employer’s disposal, and which activities may create a dependent agent or management permanent establishment. It also examines the impact of the 2025 revisions to the OECD Commentary on Article 5 of the Model Tax Convention, and whether jurisdictions have issued domestic guidance or expect to amend their law in response.
Prepared by our compensation tax colleagues across the Taxand network, the survey offers an initial overview of the risks for international groups, helping employers identify arrangements that warrant closer scrutiny and detailed, case-by-case analysis.
For further advice, please do reach out to the country contacts featured in the survey.
For similar content to our Global Guide, subscribe to our mailing list and keep up to date.