International Remote Working

The global pandemic supercharged the rise of remote working, with nearly all businesses now allowing remote working to some extent. Where this involves an employee performing duties outside their country of employment, whether on a temporary or permanent basis, this can potentially create compliance issues across a broad spectrum of areas for employers, including, but not limited to:

• Corporate tax – is there a risk that your employees are creating a Permanent Establishment for your business in the country they are working?
  
  
• Income tax – does the employee create an income tax liability in the country in which they are working?
  
  
• Social security – is the employee subject to local social security where they are working, or is an A1/Certificate of Coverage exemption certificate required?
  
  
• Payroll – if income tax and/or social security are due, is payroll withholding required?
  
  
• Company reporting – even if no taxes are due, is there still company reporting required (i.e. STBV reporting or similar)?
  
  
• Immigration – does the employee have the right to work in the location they are performing duties?
  
  
• Employment law – are any contracts for remote workers compliant with local employment laws (e.g. holiday entitlement, sick pay, working hours and conditions etc.)
  
  
• Data privacy – are there any restrictions on company/client data being accessed outside of the country of employment?
  
  
• Insurance – are remote workers covered by your insurance policies should they have an accident or an incident occur outside of their country of employment?

How we can help:

• International Remote Working policy planning, design and implementation
  
  
• Advisory work on a case-by-case basis of international remote working arrangements
  
  
• Ongoing tax, social security and payroll compliance support