The question I would like to address is linked to the new work practices after the Corona crisis. I mean the new tendency in many companies of allowing staff or certain staff members to telework.

This new tendency does not raise any problem from taxation point of view if the telework takes place within the same jurisdiction. But when some members of the staff telework from a foreign country, it is likely to be more complicated because it may involve the company having a Permanent Establishment in that country and therefore having to pay taxes and having to complete
administrative paperwork in that country, which any normal company would rather avoid.

The question is therefore : Under what conditions can teleworking abroad lead to the presence of a permanent establishment?

To read the full article : LN – Article – Teleworking and PE risk by André Bailleux