Dear TEI Colleague
In reply to recent email exchanges about “working from anywhere tax policy” issues that many of us are facing, I’m happy to share that Monique van Herksen ([email protected]) and other experts from Simmons & Simmons agreed to participate at a TEI roundtable about this topic.
The Roundtable is planned for Wednesday 14 December from 2.30pm to 3.30pm (GMT). You can register using this link.
What will we be discussing?
The COVID-19 pandemic has demonstrated that “normal” in-office working regimes are not a necessity for business success. As a result, many companies and multinational groups are encountering individuals (both existing employees and potential hires) who wish to be engaged on a “nomad employee” basis, meaning that they work physically out of a country different from that of their employer, without being formally seconded abroad.
In response to many queries as to how nomad employees can best be engaged by their employer entities and groups, the Simmons & Simmons international Tax team submitted a memorandum to the UN Tax Committee regarding the tax challenges for companies and groups employing nomad employees - Nomad_employees_paper_14_10_2022100970326v1__003_.pdf.
In October 2022, the UN Tax Committee responded to Simmons’ submission in their annual plenary meeting, announcing that the submission prompted them to include the issue of nomad employees in their Digitalized and Globalized Economy workstream (which among other issues looks at the role of the physical presence test in international tax rules).
The UN would welcome further input on this issue, which Simmons intends to provide before Christmas. In order to gather feedback, Simmons & Simmons is engaging with organisations on potential solutions which would make a difference to them in relation to their own specific challenges with nomad employees.
We look forward to hearing from you.
TEI EMEA - Direct Tax Committee