OECD Helps Countries Interpret Tax Treaties During Crisis

Tax treaties will help determine which country can tax an individual or company when coronavirus-related travel restrictions make it unclear how to interpret normal rules, according to the OECD.

In guidance released Friday, the Organization for Economic Cooperation and Development explained how countries can interpret treaties in instances where employees are stranded abroad or working remotely due to the crisis.

Under normal circumstances, when key employees, such as those who conclude contracts, are working in a jurisdiction, it can trigger permanent establishment—a taxable presence in that jurisdiction.

That’s unlikely in situations where the jurisdiction in question has a tax ...