EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
Recent Searches
Covid-19 has led to a significant change in working conditions. Almost overnight, busy offices were abandoned as employees were told to work from home while governments grappled with the pandemic. In certain circumstances, some employees even moved countries, at least temporarily.
Over time, most countries have re-opened their borders and travel has tentatively resumed. Working practices, however, have not necessarily returned to the status quo ante – for many organisations, some degree of remote working is here to stay.
This article examines fixed place permanent establishment (PE) considerations arising from cross-border home offices, mainly using the 2017 OECD Model1 and associated commentaries (Commentary) as a reference.2
- OECD Model Tax Convention on Income and on Capital, 21 November 2017 (“OECD Model”).
- While we note the Commentary is not binding, it should be persuasive in many cases.
Download this report
How EY can Help
-
Our permanent establishment team can help mitigate tax and other risks caused by taxable presences outside your company's state of residence. Learn more.
Read more -
Our international tax planning professionals can help support you with the tax aspects of cross-border situations and transactions. Find out how.
Read more
Summary
Can an employee’s home office constitute a fixed place PE for the employer? What factors do individuals and businesses need to consider? With the rise of remote working following the pandemic, we examine these topical issues.