The rise of cross-border teleworking poses challenges to the taxation systems around the world. The increased ability for an employee to telework from another country raises tax issues that affect both employees and employers. The main ones are related to Permanent Establishment of the company and the taxation of the employee in several jurisdictions. The EESC believes that it is urgent to develop taxation rules conducive to the demands of the labour market of today. Tax obstacles to cross-border teleworking should be addressed globally. Regional solutions are already being developed. For the EU, with its Single Market, it is important to find a solution.
In order to feed into the policy debate and to bring together the views of stakeholders and experts from the OECD, the UN Tax Committee and the European Commission, the EESC is organising a public hearing entitled “Taxation of cross-border teleworkers – possible solutions" to be held on Tuesday, 4 July 2023, 09.00-13.00 in Tallinn, Estonia.
The hearing will also serve to assess the situation in order for the EESC to prepare recommendations for European legislators.