The OECD Signals a Reset of Tax Rules in a World of Remote Work
The Organization for Economic Co-operation and Development, a coalition of 38 advanced economies that includes the United States and many European partners, is preparing to rethink tax rules in response to the rising trend of working from abroad. A senior official from the OECD Center for Tax Policy and Administration has signaled this shift, underscoring how governments must adapt to new patterns of cross‑border employment. [OECD]
By late 2023, the OECD intends to publish a comprehensive inventory of the tax challenges that telework creates for both governments and businesses. The plan is to identify which issues deserve further review and potential policy changes. [OECD]
Early indications suggest these rules could influence the duration a person can stay outside their home country before tax residency in another jurisdiction is triggered. The aim is to clarify where income should be taxed when work is performed remotely across borders. [Bloomberg]
The ongoing shift toward digital working models has accelerated the emergence of remote professionals who live in one country while earning income from another. This phenomenon raises questions about the proper allocation of tax obligations between home countries and host locations. [Bloomberg]
Recent results from a market study show a notable rise in demand for remote-friendly roles. In February 2023, available positions that permit virtual work expanded at a brisk pace compared with the prior year, reflecting a broader labor market trend toward flexible arrangements. [Avito]