Treat coronavirus-related tax concerns as exceptional, says OECD

The work scenario has changed across the world due to Covid with most employees working from homes while others may have got stuck in foreign countries because of the lockdown

Will a non-resident stuck in India for over 182 days because of the Covid-19 lockdown be liable to be taxed in India? Will cross-border workers stuck in India for a longer duration impact the tax residency or result in permanent establishment- (PE-) related tax concerns for his overseas employer?

These situations should be treated as ‘exceptional and temporary’ and should not trigger a change in residency or PE status, according to the Organization of Economic Cooperation and Development (OECD) in its guidance note.

The note addressed how countries’ restrictions on mobility due to the pandemic affect common provisions in tax treaties. Indian