Article
Six tax considerations for international remote working
Feb. 1, 2021 · Updated Sept. 3, 2025 · Authored by Roy Deaver, Brittain Cunningham
If your employees are working from another country — even temporarily — your organization should evaluate the tax implications of a cross-border work arrangement to protect itself from cross-border tax complications.
In recent years, there has been a significant increase in remote work arrangements. Many employers have found themselves with employees working remotely across an international border. During the pandemic many countries offered temporary tax relief to this type of employment. However, as remote international work becomes more common, countries have varied their treatment of the tax implications.
Below, you can learn how to navigate the tax implications of cross-border work arrangements.
1. Determine if there’s risk of establishing a taxable presence
When an employee works across an international border, an employer should consider whether the employee’s activities in that country causes the organization to have a permanent establishment — and therefore taxable presence — in the country where the employee performs their work. Most countries source income to the location where services were performed.
A permanent establishment typically subjects the company to income tax in that country based on the following:
- Types of activities being conducted by the employee
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.