Home office from the perspective of international taxation and the related administrative burden for businesses

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F49777513%3A23510%2F24%3A43974284" target="_blank" >RIV/49777513:23510/24:43974284 - isvavai.cz</a>

Result on the web

<a href="https://drive.google.com/file/d/10DlnO5LvptQeybtTOtFH3FYrQ5mCNHp3/view" target="_blank" >https://drive.google.com/file/d/10DlnO5LvptQeybtTOtFH3FYrQ5mCNHp3/view</a>

DOI - Digital Object Identifier

—

Result language

angličtina

Original language name

Home office from the perspective of international taxation and the related administrative burden for businesses

Original language description

Employers enable even their foreign employees to work from home. Cross-border remote working entails a whole range of tax and administrative duties for employers because they employ staff in a different country than that of their country of registered office. The research aims to identify, analyse, compare and evaluate the issues of remote working for foreign employees with a specific focus on the Czech Republic, Germany and Austria. Employers must deal with several specific issues: whether they create the so-called permanent establishment in the country of residence of these employees or not; which country has the right to tax the employment income; what social and health insurance contributions from the wages of these employees will be paid by the employer; and where the employees will be entitled to the social security. The methodological approach is based on the qualitative research strategy and integrates information from the selected range of literature sources, tax legislation and real decision-making examples from corporate practice.The research results fill a gap in the international taxation of home office work. The issue of permanent establishment may, in some cases, lead to the so-called conflict of classification if different countries view the permanent establishment differently. Analysing and comparing the interpretation of permanent establishment in the case of home office work from the German, Austrian and Czech perspectives identify factors and contribute to promoting a consistent and reciprocal decisions when judging situations that lead to creating a permanent establishment of a non-resident taxpayer in the other country. With respect to the taxation of wage income, selected complications and income classification conflicts related to the allocation of taxation between the employee&apos;s country of residence and the employer&apos;s country of registered office are identified.

Czech name

—

Czech description

—

Type

O - Miscellaneous

CEP classification

—

OECD FORD branch

50204 - Business and management

Project

—

Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2024

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů