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The OECD has published Updated guidance on tax treaties and the impact of the COVID-19 pandemic that deals with:

  • creation and continuation of a permanent establishment (PE), including home office, agency, and construction-site PEs
  • change of residence, including by entities and individuals, plus the application of tie-breaker rules to dual residents
  • income from employment, i.e. payments under stimulus packages, stranded workers, cross-border (frontier) workers, and teleworking from abroad.

The paper is a Secretariat view on the interpretation of various treaty provisions - i.e. jurisdictions may adopt a different view and/or outcomes could be affected by different tax regimes (such as state/provincial taxes). It applies in circumstances where public health measures are in effect and extends previous guidance given the longevity of the crisis. Examples of guidance issued by individual tax authorities are set out (such as from Australia, Austria, Canada, Germany, Greece, Ireland, the United Kingdom, and the United States), and tax authorities are encouraged to issue further, consistent