OECD Pressed for More Guidance on Permanent Establishment Rules

Companies need additional guidance on the impacts of remote work on corporate taxes and the creation of taxable permanent establishments, practitioners told the OECD in comments as part of the group’s global workforce mobility project.

More direction is needed on when a worker’s presence in a country makes a company’s business there taxable and what a high-level executive working overseas can mean for a company’s transfer pricing positions, business and tax groups said in comments to the OECD.

In sum: What level of business activity in a country is enough to create a permanent establishment?

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