Remote Work Legal Considerations

Cross-Border WFH & Permanent Establishment: What the 2025's OECD Update Says OECD has published the 2025 update to the OECD Model Tax Convention, approved by the Committee on Fiscal Affairs on 13 October 2025 and by the OECD Council on 18 November 2025. A key highlight: important clarifications in Article 5 Commentary on when an individual’s home can become a “place of business” of the enterprise. Here’s a simplified take: a. Not every home office = PE An employee working from home in another country does not automatically create a Permanent Establishment. b. Key tests still apply: Permanence - Is the place used regularly and continuously? Business use - Is the home truly functioning as a place of business? Nature of activities - Are they core, or merely preparatory/auxiliary? c. 50% Working-Time Guideline If the employee works less than 50% of their total time from the overseas location in a 12-month period - generally no PE. If 50% or more, then a deeper factual review is needed. - The “Commercial Reason” Test – the critical determinant PE risk increases if the employee's presence facilitates business in that country, such as: meeting customers or suppliers, building/servicing a local client base, managing vendor relationships, sourcing or developing business opportunities If the WFH arrangement exists only due to employee preference or cost-saving, not business need - No PE. - Intermittent / incidental interactions: occasional meetings or light-touch activity in that country are not enough to trigger a PE. Bottom Line: The 2025 OECD Update makes one thing clear: Cross-border WFH does not automatically create a tax presence - but sustained, business-driven, on-ground activity can. A timely reminder for multinationals to revisit their remote work, global mobility, and PE risk frameworks. #OECD #OECD2025Update #ModelTaxConvention #PermanentEstablishment #Article5 #CrossBorderWork #RemoteWorkTax #GlobalMobility #InternationalTax #TaxPolicy #TransferPricing #BEPS #GlobalTax #CorporateTax #TaxUpdates #WFHCompliance

Let’s Get Real About Visas in the UAE 🛑 As someone who has been a Recruiter and HR Business Partner for years, I’m a huge advocate for following the rules, especially when it comes to employment law. Simply put: I’ll only align myself with companies that are 100% compliant with the law. That’s why, at Allsopp & Allsopp, we don’t mess around when it comes to visas. No agent or employee joins our team without a proper, legal visa in place. Visa Fraud: The Hard Truth 👀❗ What am I holding here? ⬇ This is an Employment Visa — and it’s more than just paperwork, it’s proof that you’re legally employed with Allsopp & Allsopp before you even step foot in Dubai ✅ It’s not a tourist visa. It’s not a waiting game. This means you are already an employee before you arrive in the UAE. This E-Visa comes with a barcode and your sponsor info, so you can start working the moment you land. Then, your employer has 30 days to complete your medical and biometrics, and you’ll have your Emirates ID in no time. Let’s clear up the confusion: ▫️ A Tourist Visa = Travel only 🏖 ▫️ A Work Visa = Start working right away 💼 Any company telling you to come work for them on a tourist visa is breaking the law. Full stop. Tourist visas are for visitors, not employees, and working on one can get you in serious legal trouble. An employee caught working without a valid employment visa, can face fines of up to 50,000 AED, deportation, and potentially a ban from re-entering the UAE. Other Red Flags to Look Out For as a New Employee in Dubai 🚩🚩🚩: ▫️ Border Run’s = No company should ever as you to complete a border run 🏃🏻 ▫️ Tourist Visa Extensions = No company should ever make you pay for a tourist visa extension 💳 And if any employer says they’ll apply for your visa: ❌ After you pass probation ❌ After closing your first deal ❌ After you hit a specific commission target ...they’re breaking the law and putting you at risk. In real estate, the job is stressful enough without having to worry about your legal status. Make sure you’re joining a company that takes compliance seriously, respects your rights, and doesn’t treat you like a temporary solution. Don’t settle for attractive offers such as 70% commission, when a company can’t protect your human rights. Come back next week - when I will be talking more things HR in Dubai 🇦🇪 #employmentlaw #HR #dubaicareers

“You live in Kenya. You work for a German firm. You’re paid in euros. So why is the Kenya Revenue Authority asking for your PIN?” Because in 2024, “remote” doesn’t mean invisible — at least not to the taxman. Kenya is now home to over 100,000 expatriates — many of whom are paid abroad, work online, and live in Nairobi, Naivasha, or Nakuru. But here’s the thing: If you spend 183+ days in Kenya, you’re considered a tax resident. If you're working for a Kenyan company (even while abroad), you need a KRA PIN. And if you're hiring remote Kenyan talent from overseas, you could trigger corporate tax liabilities without realising it. This isn’t just about income. It’s about compliance, cost, and consequences. We just released a sharp, simplified guide: 👉🏾 “Am I Being Taxed Twice?” – The Expat & Remote Worker Survival Kit for Kenya. The newsletter is attached and can be shared. It unpacks: ✅ How double taxation actually works ✅ Whether you're protected under a DTA ✅ What “permanent establishment” means for remote employers ✅ Why failing to register for a KRA PIN could block your salary, your lease—or worse This is for expats, global employers, and anyone who’s ever wondered: “How can I work in one country… and get taxed in two?” 💬 Questions after reading? We’re helping clients across the globe navigate this new reality. Because in the age of digital work, compliance is no longer a location—it's a strategy. #DoubleTaxation #RemoteWork #ExpatriatesInKenya #KRA #TaxCompliance #MMWAdvocates #CrossBorderLaw #TaxStrategy #LegalWithPerspective

𝐌𝐮𝐜𝐡 𝐚𝐭𝐭𝐞𝐧𝐭𝐢𝐨𝐧 𝐢𝐬 𝐛𝐞𝐢𝐧𝐠 𝐠𝐢𝐯𝐞𝐧 𝐭𝐨 𝐭𝐡𝐞 𝐫𝐞𝐜𝐞𝐧𝐭 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧 𝐫𝐞𝐠𝐚𝐫𝐝𝐢𝐧𝐠 𝐭𝐡𝐞 𝐬𝐞𝐜𝐨𝐧𝐝𝐦𝐞𝐧𝐭 𝐨𝐟 𝐞𝐦𝐩𝐥𝐨𝐲𝐞𝐞𝐬 𝐢𝐧 𝐝𝐞𝐭𝐞𝐫𝐦𝐢𝐧𝐢𝐧𝐠 𝐩𝐞𝐫𝐦𝐚𝐧𝐞𝐧𝐭 𝐞𝐬𝐭𝐚𝐛𝐥𝐢𝐬𝐡𝐦𝐞𝐧𝐭. 𝐓𝐡𝐞𝐫𝐞 𝐢𝐬 𝐦𝐮𝐜𝐡 𝐰𝐡𝐢𝐜𝐡 𝐧𝐞𝐞𝐝𝐬 𝐭𝐨 𝐛𝐞 𝐬𝐞𝐞𝐧 𝐛𝐞𝐟𝐨𝐫𝐞 𝐜𝐨𝐧𝐜𝐥𝐮𝐝𝐢𝐧𝐠 𝐭𝐡𝐚𝐭 𝐚 𝐩𝐞𝐫𝐦𝐚𝐧𝐞𝐧𝐭 𝐞𝐬𝐭𝐚𝐛𝐥𝐢𝐬𝐡𝐦𝐞𝐧𝐭 𝐢𝐬 𝐭𝐫𝐢𝐠𝐠𝐞𝐫𝐞𝐝 𝐨𝐫 𝐧𝐨𝐭. 𝐇𝐞𝐫𝐞 𝐚𝐫𝐞 𝐦𝐲 𝐟𝐞𝐰 𝐜𝐞𝐧𝐭𝐬 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐫𝐞𝐠𝐚𝐫𝐝: 𝐈𝐦𝐦𝐢𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐥𝐚𝐰𝐬: The Indian immigration laws require that anyone entering India from any place outside India should have a valid passport, except in some instances. If the activities undertaken in India do not align with the visa category, the same may be treated as contravention. For eg., if the correct visa category is an employment visa but the individual visits on a business visa. Therefore, the secondees must make the visa application appropriate, which sticks to the purpose sought during the secondment tenure. 𝐒𝐨𝐜𝐢𝐚𝐥 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐥𝐚𝐰𝐬: The Indian Social Security scheme was made mandatory for International workers warranting a contribution of 12% each from the Secondee and the employer. To avoid the contributions in two countries (home country as well as host country), Social Security Agreements ('SSAs') have been entered by India whereby an exemption from contribution in the host country can be claimed subject to the employee's compliance with the social security schemes of their home country and furnishing of Certificate of Coverage. There are countries (such as Japan) wherein the exemption from contribution in India is granted only if the secondees work in India on behalf of the home country's employer. The entities availing the exemption for the secondees from such countries may trigger the risk of PE exposure. It is therefore important for overseas entities to take into account the language employed in the SSAs while entering into secondment arrangements. 𝐄𝐱𝐜𝐡𝐚𝐧𝐠𝐞 𝐂𝐨𝐧𝐭𝐫𝐨𝐥 𝐋𝐚𝐰𝐬: It is often seen that the salary of the secondees is paid by the overseas entity and thereafter recharged from the Indian entity, even though it is claimed that the Indian entity is the employer. In this regard, it must be noted that the Indian exchange control laws require that an employee (including a secondee) of an overseas entity may receive the whole salary payable towards services rendered in India in a bank outside India. However, where the Secondee is in direct employment with an Indian entity, the entire salary is required to be received by the Secondee in India and thereafter remitted outside India after paying appropriate income tax, social security contributions etc. It is thus important to identify who qualifies as the employer, the overseas entity or the Indian entity so that the remittances comply with exchange control laws. #secondment #multiplelaws #incometax #permanentestablishment #tax #treaty

If I got 100 bob every time someone asked me how taxes work for remote jobs… …I’d have enough for a G-wagon. Let’s talk about what actually happens when you're working remotely for foreign companies. 1. Where you live usually determines where you pay tax It’s not about where the company is based. It’s about where you’re physically working. So if you're in Nairobi, you owe taxes to Kenya. If you're in Accra, then Ghana Revenue Authority wants their share. You’re taxed in your country of residence—even if your salary is coming from the US, UK, or Canada. 2. Most African countries tax worldwide income Yes, even if you're paid in USD. Even if your client is in Europe. Even if the money lands in your Wise or Payoneer account. If you're a tax resident (you live in that country most of the year), you are supposed to declare it. Whether people do… is another story. But legally, that’s the rule. 3. U.S. and EU companies won’t usually withhold your taxes If you’re a contractor or freelancer, you’re on your own. You need to handle your own income tax, NHIF, NSSF, and anything else locally. No one's doing PAYE for you. Some Kenyan freelancers make this mistake: They earn online, never file taxes, and only realize years later when KRA sends a demand. 4. You might need to register a business If you work as a contractor (1099), some countries expect you to register as self-employed or open a sole proprietorship. This affects how you’re taxed. And in some places, it helps you get access to official payment platforms and local tax benefits. 5. If you're working abroad or moving around a lot… This is where it gets tricky. You may become a tax resident in a new country just by staying there too long. Some countries consider 183 days enough to tax you. That’s how some Africans working remotely in USA, Portugal, or the UK get hit with surprise tax bills. 6. Don’t forget: proof of tax filing matters Want to apply for a visa? Get a mortgage? Register a business in your name? Your tax records will matter. Especially if your income is “digital” and not tied to a local employer. So, what should you do? — Know whether you’re a contractor or employee — Declare your income in your country — Keep records of invoices, payments and days worked — Talk to a tax expert if you're working across borders

“It’s a gray area.” No, it isn’t. Over the past few months, I have spoken with several U.S. entrepreneurs who moved to France in good faith. They did everything “by the book.” They hired a visa agency. They disclosed that they own an LLC or an S-Corp in the U.S. They explained that they would continue working with U.S. clients remotely. And yet, they were advised to apply for a long-stay visitor visa. Let’s be clear about something. A visitor visa does not authorize you to work from France. Yes, French consular authorities may renew a visitor visa if you meet the income requirement and your income is generated outside France. That part is true. But that does not make remote work from France lawful. Here is where the real issue begins. If you are physically performing your activity from France — even for a U.S. LLC, even for U.S. clients — the income is, from a French tax perspective, generally considered French-source professional income. That means: • It is taxable in France. • It is subject to French social security contributions. • It requires proper registration of a professional activity in France. Now the paradox: If you hold a visitor visa, you are not authorized to work. If you are not authorized to work, you cannot properly register. If you cannot register, you cannot correctly declare and pay French social contributions. So people who genuinely want to comply end up trapped in a structurally incoherent situation. Not because they intended to cut corners. But because they were poorly guided at the visa stage. Is the risk of an audit high? Realistically, no. But that’s not the point. The real risk appears later: • When applying for a multi-year residence card. • When applying for citizenship. • When a tax review occurs several years down the line. At that stage, “we were told it was a gray area” is not a legal argument. In most of these cases, the appropriate route from day one would have been: • Profession libérale / entrepreneur visa, or • Talent passport (depending on the profile). These visas exist for a reason. Relocating to France as an entrepreneur is absolutely feasible. But the structure must be coherent: immigration status, tax position, and social security treatment must align. If you are planning a move to France while continuing to operate a U.S. business remotely, do not treat the visa as a pure administrative formality. It determines everything that follows. And correcting it later can be far more costly — financially and structurally — than doing it properly from the start.

#𝟏 𝐌𝐲𝐭𝐡 about working in Saudi Arabia. “You can convert a visit visa to a work visa” 🚫 𝐅𝐚𝐥𝐬𝐞. Your visit visa (tourist, business, Umrah) is a 𝐭𝐞𝐦𝐩𝐨𝐫𝐚𝐫𝐲 𝐩𝐚𝐬𝐬. It is NOT a ticket to work. Trying to do so is a 𝐬𝐞𝐫𝐢𝐨𝐮𝐬 𝐯𝐢𝐨𝐥𝐚𝐭𝐢𝐨𝐧. The real process isn’t a conversion. It’s a reset. And getting it wrong can cost you everything Your status. Your reputation. Your chance to work legally. So what if you land a fantastic job offer while visiting Saudi? Don’t worry. There’s a 𝐜𝐥𝐞𝐚𝐫, 𝐥𝐞𝐠𝐚𝐥 𝐩𝐚𝐭𝐡. The 5-Step Legal Blueprint: 1️⃣ 𝐒𝐞𝐜𝐮𝐫𝐞 𝐭𝐡𝐞 𝐖𝐨𝐫𝐤 𝐏𝐞𝐫𝐦𝐢𝐭 – your employer applies through Qiwa and MHRSD. 2️⃣ 𝐆𝐞𝐭 𝐕𝐢𝐬𝐚 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐳𝐚𝐭𝐢𝐨𝐧 – issued by the Saudi Ministry of Foreign Affairs. 3️⃣ The Non-Negotiable Step: 𝐘𝐨𝐮 𝐌𝐔𝐒𝐓 𝐞𝐱𝐢𝐭 𝐭𝐡𝐞 𝐜𝐨𝐮𝐧𝐭𝐫𝐲. 4️⃣ 𝐆𝐞𝐭 𝐭𝐡𝐞 𝐕𝐢𝐬𝐚 𝐒𝐭𝐚𝐦𝐩𝐞𝐝 – at a Saudi embassy in your home country. 5️⃣ 𝐑𝐞𝐭𝐮𝐫𝐧 𝐚𝐧𝐝 𝐆𝐞𝐭 𝐘𝐨𝐮𝐫 𝐈𝐪𝐚𝐦𝐚 – your legal residency and work ID. 💡 Your future employer is the key. They are the only ones who can legally initiate and sponsor this process. ⚠️ Critical Warning: Do 𝐧𝐨𝐭, under any circumstances, start working before Step 5. You’ll be violating labor and immigration laws. And that can end your opportunity in Saudi before it even begins. Because in Saudi Arabia, It’s not about finding a shortcut. It’s about following the system. --------------------------------------------------------- Like this post? Want to see more? 🔔 Ring it to my profile ✅ Connect with me ♻️ Repost to help your network

Digital Nomad? Thinking about working remotely while visiting the U.S.? Be careful; it might not be authorized. If you plan to work online while in the U.S., even for a foreign employer, you may be violating immigration rules. The U.S. doesn’t currently offer a digital nomad visa. Tourist visas like the B-1/B-2, the Visa Waiver Program (ESTA), or visa-exempt Canadians do not allow remote work, regardless of where your company or clients are. Who counts as a digital nomad? Anyone working online while traveling or living in another country, whether as a freelancer, remote employee, or business owner. Even if the income comes from abroad, U.S. immigration law looks at where the work is performed. What does the B-1/B-2 visa allow? * B-1: Limited business activities like attending meetings or negotiating contracts * B-2: Tourism, visiting family, or medical treatment Neither allows remote work nor provides ongoing, unpaid services for a foreign company. What is considered “work” by U.S. immigration? Under INA 101(a)(15)(B) and the Foreign Affairs Manual (9 FAM 402.2), work includes any activity that brings income, replaces a U.S. worker, or involves productive labor. That means things like: * Logging into your company’s system * Responding to client messages * Deliver digital products or services Doing this while physically present in the U.S. could be considered unauthorized employment. What are the risks? Trying to work remotely while on a tourist visa can lead to: * Denied entry at the airport * Visa cancellation * Inadmissibility under INA 214(b) Simply saying “I work online” may raise red flags with U.S. Customs and Border Protection. You must clearly show that your visit is temporary and for permitted reasons. Is there a U.S. digital nomad visa? No. Unlike some countries that offer remote work visas, the U.S. has no visa category specifically for digital nomads. Are there any visa options that support remote work? Some employment-based or investment visas might allow it, depending on your situation. These all require employer sponsorship, specific qualifications, or investment; none are designed for freelance or independent remote workers. Don't rely on a tourist visa if you're considering working from the U.S., even temporarily or part-time. #RemoteWork #ImmigrationLaw #USImmigration #DigitalNomads #GlobalMobility #B1Visa #ESTA #WorkFromAnywhere #Canadian #Visitorvisa

#CrossBorder work in #Europe has entered a new, more structural phase. The latest data on A1 certificates for #socialsecurity coverage for 2024 shows: 🔹 Rise of #multistate work – There is strong growth in A1s for work in two or more countries, reflecting new business models and more complex, ongoing multicountry roles. 🔹 More third‑country nationals – A1s for non‑EU/EEA/Swiss nationals are increasing, both for short‑term assignments and continuous multi‑country work. Nationality is becoming a key data point for monitoring labour markets and compliance. 🔹 Telework framework - Switzerland stands out, where aligned social security and tax changes make remote cross‑border work more practical. 🔹 Sharper enforcement – Authorities are leveraging structured data, #digitalisation, and cross‑border cooperation to scrutinise A1 use and labour standards more closely, with more dialogue and conciliation between institutions. Taken together, these trends – and the clear shift towards stronger enforcement – mean that businesses should expect more questions, more documentation requests, and fewer “informal” fixes. It’s not just about having an A1 or a policy on paper; it’s about the quality of compliance: Are roles and work patterns genuinely aligned with the declared social security position? Is the decision‑making documented, consistent, and defensible across the organisation? Can you explain your approach clearly to both employees and authorities? Those who invest in high‑quality, principles‑based compliance – not just ticking boxes – will be better positioned to support #mobility, manage #risk, and maintain trust with regulators and their workforce.

A genuinely ground-breaking update in the world of international remote work compliance has just landed from the OECD. The 2025 Update to the OECD Tax Model Tax Convention finally gives clearer direction on how cross-border home working should be treated for tax treaty purposes. One of the biggest shifts is the new guidance in the Commentary to Article 5 on when working from home in another jurisdiction might create a fixed place of business permanent establishment. It is not a free pass and it does not remove permanent establishment risk altogether, but it does bring some long overdue common sense into an area that has frustrated corporate tax teams for years. Here are five takeaways from the new guidance: ✔️ If someone works from home in another country for less than half of their working time across a year, then in most cases it will not create a permanent establishment. ✔️ Even if they spend more than half their time working from abroad, that still does not automatically create a permanent establishment. What matters is what they actually do there. ✔️ If the employee is abroad purely for personal reasons and the company has no real business need for them to be in that country, the risk is generally low. ✔️ Just using a home office regularly does not make it a permanent establishment unless it genuinely becomes part of how the business operates. ✔️ What really counts is the overall story: how often the employee works there, what they do, and whether their work in that location meaningfully drives the company’s business in that country. A key point worth highlighting is that every request still needs to be assessed on a case-by-case basis. No two situations are identical. But this updated OECD guidance does meaningfully reduce the level of risk for arrangements involving OECD countries. For many organisations, this update could ease a lot of internal tension. If your tax team is still declining international remote work requests purely because of permanent establishment concerns, it is worth sharing this guidance with them if they have not reviewed it yet. Of course you still need proper safeguards and structure in place. If you want to see how we approach that with our own award-winning Work From Anywhere platform, I would be happy to walk you through it. Our view is that this guidance puts modern WFA frameworks and policies firmly centre stage as a powerful driver of employee retention. If your legal or tax teams are still saying no by default, now is the time to challenge that position and show that there is a balanced way to do WFA. 🔗 https://lnkd.in/dYKXgGzf