During the work on the update 2025 of the OECD model treaty and model commentary (hereinafter MC), the topic on the agenda, among other things, was the international mobility and the thereby growing cross-border remote work. As of 18 November 2025, the OECD has published an extensive update of the MC. The new specifications bring […]
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Recently, the BMF published a new EAS ruling 3445 in which it denied the qualification of a home office as a permanent establishment (PE) because working in the home office was not required by the employer. Circumstances A person residing in Austria is employed at a German-based managing holding company’s accounting department. The person permanently […]
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A new decision of the Austrian Supreme Administrative Court (VwGH) (22.6.2022, Ro 2020/13/0004) was recently published regarding the definition of a “fixed place” under tax treaty law. For a fixed place to exist, a taxable person must have power of disposal over it. For Austrian tax purposes, a decisive hallmark of the existence of a […]
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The Austrian Consultation Agreement with Germany contains special rules concerning the application of the double taxation treaty, which were introduced due to the pandemic. Accordingly, employers that are resident in Germany would not be deemed to have created a permanent establishment (“PE”) in Austria if an employee who is resident in Austria works from a […]
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Due to the COVID-19 prevention measures, many employees have for several months been unable to carry out their activities at the location at which they would normally have worked before the pandemic. In cross-border circumstances, this can lead to undesired changes in taxation rights between states – for example, due to the creation of permanent […]
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