Employer obligations for remote workers remain, despite OECD’s recent clarification on permanent establishment rules

Given both the financial and reputational risks for employers when engaging in a remote work arrangement with an employee, it is critical that businesses are aware of their responsibilities and obligations prior to commencement, as highlighted by Hayley Lock and Tom Newsome.

The Organisation for Economic Cooperation and Development (OECD), in mid-November 2025, released updates to its Model Tax Convention Commentary, clarifying permanent establishment (PE) rules for overseas remote work arrangements. See related article: OECD updates commentary on permanent establishment rules, marking new era of remote working The updated guidance clarified that in most cases, short-term remote work from a home office or similar premises in another country, should not create p...

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Authors: Hayley Lock, Tom Newsome

Published Date: 19 December 2025