Have you considered the tax risks of your international remote working arrangements?

26 October 2020

The COVID-19 pandemic has caused a shift in the working patterns of employees on an unprecedented scale which will have a lasting impact. The resulting displacement of workers arising from border restrictions and personal choice has resulted in employees performing work duties in a country different from their normal place of work. Employers need to be aware of where their employees are working to ensure that they are remaining tax compliant across the globe.

BDO QuickTrip is an online portal and app designed to help HR and Finance teams manage the compliance challenges from growing international business traveller communities. Find out how it could help you today.

Read our article which discusses corporate tax residence in a post-COVID world.

As we wrote in our article focusing on ‘global immobility’ at the start of the lockdown period in the UK, a significant number of globally mobile employees and local employees alike began working from home under varied arrangements around the globe. Whilst in many international jurisdictions employees had begun to return to the office during the late stages of summer, as a result of ongoing COVID-19 concerns many employees continue working from home, including from overseas, under a variety of arrangements.

The success of remote working for some organisations has forced or encouraged many to re-think rigid office based working policies. Some employers have noticed an increase in productivity when workers are not faced with a commute into the office, as well as a positive effect on personal wellbeing. Whilst employers are open to such requests and want to maximise employee wellbeing and retention, they need to be aware of the potential risks associated with such an arrangement.

Remote working for employers and employees 

Have you considered your international remote working arrangements?

Download our flyer to read our full guidance on considerations including corporate tax, social security and other compliance obligations that businesses and individuals should consider.