When does doing a little work on vacation turn into a stay that piques the interest of local tax authorities? And does a UK company, for example, face tax complications abroad if they have staff and key decision makers are dotted across Europe working remotely?
National tax authorities and the Organization for Economic Cooperation & Development are grappling with those questions as the remote-working revolution blurs the lines between work, residency and time off.
The result could be tighter and clearer rules on how long people can work abroad before falling into another country’s tax net. It’s also opening questions about social security and pensions payments for staff that keep a home in a different jurisdiction from where they are