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Short-term global remote and hybrid working

The move to hybrid working has seen many employers review their remote working policies in order to offer more flexible ways of working in line with competitors offering ‘work from anywhere’ policies.

Many employers are now allowing employees to work from abroad for limited durations, typically for up to 30 days whilst living in holiday accommodation during the summer, but sometimes for longer periods. However, remote working by employees away from their home country, even for short periods, can lead to unforeseen or challenging tax implications for both employers and employees. Moreover, the risks and implications of remote working arrangements can vary across different home and host jurisdictions.

The main tax and related issues to consider for short-term cross-border working arrangements are as follows.

As the world continues to open up after the coronavirus restrictions, creating possibilities for cross border flexible working, it is important for employers to balance requests for flexibility with the potential compliance and regulatory obligations identified above. At the very least, employers need to ensure that they consider these factors before accepting an employee request to work remotely, even for a short period of time.

For more information, please get in touch with David Williams-Richardson or your usual RSM contact.

authors:david-williams-richardson