Work from Anywhere: Treaty Shopping in Disguise?

Natalia Jarzębowska

doi:10.18778/0208-6069.110.03

Authors

Natalia Jarzębowska University of Lodz https://orcid.org/0000-0002-0365-8233

DOI:

https://doi.org/10.18778/0208-6069.110.03

Keywords:

double tax treaties, tax residency, employment income, digital nomads

Abstract

The popularisation of remote work – as a result of which the concept of ‘digital nomads’ increasingly extends to office workers – makes it necessary to analyse the situation of ‘digital nomads’ from the perspective of their taxation. The cross-border situation of remote workers is analysed in this paper in the light of the provisions of double tax treaties and tax avoidance measures. The paper attempts to answer the question of what tax consequences are associated with performing work from abroad and whether the current state of international tax law allows for work to be performed from anywhere.

Downloads

Download data is not yet available.

References

Beretta, Giorgio. 2018. “Mobility of Individuals after BEPS: The Persistent Conflict between Jurisdictions.” Bulletin for International Taxation. IBFD 72(7): 439–449. https://doi.org/10.59403/2er71kt DOI: https://doi.org/10.59403/2er71kt

Charalampous, Maria. Christine Grant. Carlo Tramontano. Evie Michailidis. 2018. “Systematically reviewing remote e-workers’ well-being at work: a multidimensional approach.” European Journal of Work and Organizational Psychology 28(1): 51–73. https://doi.org/10.1080/1359432x.2018.1541886 DOI: https://doi.org/10.1080/1359432X.2018.1541886

Dziurdź, Kasper. 2013. “Article 15 of the OECD Model: The 183-Day Rule and the Meaning of ‘Borne by a Permanent Establishment’.” Bulletin for International Taxation. IBFD 67(3): 122–127. https://doi.org/10.59403/ww776n DOI: https://doi.org/10.59403/ww776n

Elkins, David. 2017. “The Elusive Definition of Corporate Tax Residence.” Saint Louis University Law Journal 62(1): 219–236.

Elkins, David. 2021. “A Scalar Conception of Tax Residence for Individuals.” Virginia Tax Review 41: 149–201. http://dx.doi.org/10.2139/ssrn.3889245 DOI: https://doi.org/10.2139/ssrn.3889245

Emanuel, Natalia. Emma Harrington. 2023. “Working remotely? selection, treatment, and the market for remote work.” Federal Reserve Bank of New York Staff Reports 1061. https://doi.org/10.2139/ssrn.4466130 DOI: https://doi.org/10.2139/ssrn.4466130

Graetz, Michael J. 2001. “Taxing International Income: Inadequate Principles, Outdated Concepts, and Unsatisfactory Policies.” Brooklyn Journal of International Law 26(4): 1357–1448.

Kostic, Svetislav. 2019. “In Search of the Digital Nomad – Rethinking the Taxation of Employment Income under Tax Treaties.” World Tax Journal. IBFD 11(2): 189–225. DOI: https://doi.org/10.59403/1g8jv1y

Makimoto, Tsugio. David Manners. 1997. Digital Nomad. Chichester–New York–Weinheim–Brisbane–Singapore–Toronto: Wiley & Sons.

Mössner, Manfred. 2006. “Source versus Residence – An EU Perspective.” Bulletin of International Taxation. IBFD 60(12): 501–506.

OECD. 2017. OECD Model: Commentary on Article 1 para. 56.

OECD. 2020. “OECD Secretariat analysis of tax treaties and the impact of the COVID-19 crisis”, OECD Policy Responses to Coronavirus (COVID-19), OECD Publishing, Paris, https://doi.org/10.1787/947dcb01-en DOI: https://doi.org/10.1787/947dcb01-en

Pitrone, Federica. 2016. “Tax Residence of Individuals within the European Union: Finding New Solutions to Old Problems.” World Tax Journal. IBFD 8(3): 357–377. DOI: https://doi.org/10.59403/1mr2fz0

Prati, Gabriele. 2024. “Remote work’s impact on well-being: longitudinal analysis and the influence of gender, household size and childcare.” International Journal of Workplace Health Management 17(1): 72–84. https://doi.org/10.1108/ijwhm-09-2023-0140 DOI: https://doi.org/10.1108/IJWHM-09-2023-0140

Raad, Kees van. 2001. “Fractional Taxation of Multi-State Income of EU Resident Individuals – A Proposal.” In Liber Amicorum Sven-Olof Lodin. Edited by Krister Andersson, Peter Melz, Christer Silfverberg. 211–222. Stockholm: Wolters Kluwer.

Schön, Wolfgang. 2015. “Neutrality and Territoriality – Competing or Converging Concepts in European Tax Law?” Bulletin for International Taxation. IBFD 69(4–5): 271–293. https://doi.org/10.59403/28ef6by DOI: https://doi.org/10.59403/28ef6by

Soroui, Sarah Taghavi. 2023. “Encountering weak signals: economic development practitioners’ perceptions of remote work arrangements. Local Economy.” The Journal of the Local Economy Policy Unit 38(1): 3–21. https://doi.org/10.1177/02690942231180283 DOI: https://doi.org/10.1177/02690942231180283

Sutherland, Will. Mohammad Hossein Jarrahi. 2017. “The Gig Economy and Information Infrastructure: The Case of the Digital Nomad Community.” Proceedings of the ACM on Human-Computer Interaction 1(CSCW): 1–24. https://doi.org/10.1145/3134732 DOI: https://doi.org/10.1145/3134732

Wattel, Petter. 2000. “Progressive Taxation of Non-Residents and Intra-EC Allocation of Personal Tax Allowances: Why Schumacker, Asscher, Gilly and Gschwind Do Not Suffice.” European Taxation 40(6): 210–223.