The Organisation for Economic Cooperation and Development (OECD) presented on 3 April 2020 a Analysis of Tax Treaties and the Impact of the COVID-19 Crisis

The document discusses four main issues:

  1. The creation of a permanent establishment,
  2. Residence status of a company,
  3. Concerns related to cross border workers,
  4. Residence status of individuals.


In analysing these issues, the OECD relied mainly on the Commentary to the Model Tax Convention on Income and on Capital to provide guidance on issues arising in the current pandemic situation. The analysis concluded that exceptional circumstances resulting from force majeure (COVID-19) should not result in significant changes in the tax obligations of employees or employers with respect to the permanent establishment, tax residence of companies, place of residence or taxation of cross border workers.

It should also be noted that countries such as the United Kingdom, Ireland and Australia have developed their own guidelines on the impact of COVID-19 on the correct determination of tax residence.

The full text of the document can be found on the OECD website.

Author: Michał Mika – Senior Tax Consultant