Teleworking tool

Welcome

Before we start the survey, we need some basic information.

Name*

First Last

Company*

What's the name of your company or organization?

Job title*

What's your role at the company?

Individual tax

Do you monitor the presence of your employees in general?*

Yes

No

As a result of not monitoring the presence of your employees, your organisation can be impacted by several legislations and compliance obligations concerning topics like social security or individual and corporate taxation. If you want an overview of the attention points you should look out for, our BDO experts will gladly provide them for you.

Is there an international component in the employment (i.e. living and/or (temporarily) working in different countries/(foreign) employer/special tax regime)?*

Yes

No

Because there is no international component to your employment, you are at low risk of having a new cross-border tax/social security and legal liability due to continued international teleworking. However, it might still be interesting to have a more in-depth analysis of your current employment situation and verify whether your current situation complies with all the new rules. These rules handle the applicable social security and taxation together with compliance obligations as a result of this.

Does the employee work from home or from another location than the usual company location?*

Yes, in Belgium

Yes, outside Belgium

No

As (some of) your employees work from home or from another location than the usual company, you should know that these teleworking days are treated as regular Belgian working days. Unless a specific COVID-19 agreement between Belgium and the neighbouring countries (as the normal working state) can be applied i.e. The Netherlands/France/Luxembourg/Germany. It’s also good to know that these agreements have a limited duration. We at BDO can help you verify or determine this.

Does the employee go on business travel (i.e. short trips or longer assignments) outside Belgium?*

Yes

No

I don't know

As there are (possibly) employees of yours travelling for work, it is important to know that depending on the frequency, this could trigger tax residency in that country. In addition, the individual taxation of the income related to these business travel days should be further investigated. This may vary depending on the applicable (special) tax status and the bilateral double tax treaty concluded between the working state and the residence state and whether a specific COVID-19 agreement between Belgium and the neighbouring countries (as the normal working state) can be applied for i.e. The Netherlands/France/Luxembourg/Germany.
Just contact us if you would like some help with verifying or determining if this is applicable to your situation.

Knowing that you don’t have any employees travelling for business purposes, you’re at rather low risk of having a cross-border tax liability. However, it might still be interesting to verify whether the current situation doesn't lead to an unexpected impact on the applicable individual taxation and the compliance obligations resulting from this. We can help you find out if this is the case for your organisation.

Is the employee a tax resident of that country?*

Yes

No

I don't know

Don’t forget that the teleworking days of your employees working abroad could trigger taxation and other compliance obligations in the country of residence where the telework is performed. Unless a specific COVID-19 agreement (with a limited duration) could be evoked. If you need some help in verifying/determining this, we will gladly help you out.

As you have an employee who teleworks from another country but is not a resident there, this teleworking could trigger tax residency in that country. It is important to know that as long as no tax residency of that country occurs, it should be further investigated whether these teleworking days are taxable in the working state. This is based on the double tax treaty concluded with the country where the individual is a tax resident. We can help you find out if this is the case for your organisation.

Tax permanent establishment risks

Does the employee (tele home)work in another country than where the employer is located for more than 30 days during a period of 12 months?*

Yes

No

Because your employee is (tele)working more than 30 days during a period of 12 months in another country than where the employer is based, there’s a risk of having a permanent establishment/base in the country where the activity is performed. This could lead to an impact on the taxation of the employee' and/or company's income and on other compliance obligations both for the employee and the employer.

Does the employee have a commercial role?*

Yes

No

Because your employee is (tele)working more than 30 days during a period of 12 months in another country than where the employer is based, there’s a risk of having a permanent establishment/base in the country where the activity is performed. This could lead to an impact on the taxation of the employee' and/or company's income and on other compliance obligations both for the employee and the employer.

Does the employee negotiate (the material elements of) or sign contracts?*

Yes

No

Because your employee is (tele)working more than 30 days during a period of 12 months in another country than where the employer is based, there’s a risk of having a permanent establishment/base in the country where the activity is performed. This could lead to an impact on the taxation of the employee' and/or company's income and on other compliance obligations both for the employee and the employer.

Does the company have a permanent establishment in the countries where the employees are teleworking from home?*

Yes

No

Knowing that your company has a permanent establishment in the countries where the employees are teleworking from home, it should be investigated whether the salary costs of the employee should be borne/allocated to the permanent establishment in the working country. As this could have an impact on the taxation of the employee's and/or company's income and on other compliance obligations both for the employee and the employer.

Is the employees' home office (located in another country) at the employer's disposal with a certain degree of permanency/ is the use of the home office an essential condition of the labour contract/ is the home office used full-time or more than sporadic?*

Yes

No

I don't know

Because your employee is (tele)working more than 30 days during a period of 12 months in another country than where the employer is based, there’s a risk of having a permanent establishment/base in the country where the activity is performed. This could lead to an impact on the taxation of the employee' and/or company's income and on other compliance obligations both for the employee and the employer.

As your employee only sporadically works from the home office (located in another country) which is not at the employer’s disposal, your risk profile of having a permanent establishment in another country is rather low. However, it might still be interesting to verify whether the current situation doesn't lead to an unexpected impact on the applicable social security, taxation and compliance obligations resulting from this.

Social and legal

Where is the employment situated ?*

EU (except Denmark)

Outside EU or Denmark

Unfortunately, employment situated outside the EU or Denmark is not covered by this tool. Possible bilateral social security agreements could apply and should be investigated.

Did parties choose applicable employment law?*

Yes

No

Because there are parties who chose applicable employment law, chosen law is applicable. A choice of law made by the parties shall not have the result of depriving the employee of the protection afforded to him by the mandatory rules of the law of the country which would have been applicable in the absence of choice.

There are no parties that chose applicable employment law. In this case, the agreement shall be governed:

by the law of the country in which or, failing that, from which the employee habitually carries out his work in the performance of the contract; or
if the applicable law cannot be determined on the basis of the preceding criterion, the law of the country in which the place of business through which the employee was engaged is situated;
if it appears from the circumstances as a whole that the contract is manifestly more closely connected with a country other than that indicated by the two preceding criteria, the law of that other country shall apply.

The local sanitary measures will have to be respected, and additional measures regarding data privacy may have to be taken.

Does the employee temporarily (less than 24 consecutive months) work 100% abroad (in another country than his original place of work) within the EEA and Switzerland?*

Yes

No

You have an employee temporarily working 100% abroad in another country than his original place of work within the EEA and Switzerland. In this case, certain rules of the EU Regulation 883/2003 regarding the posting of workers may apply. The employee can remain under the social security system of the original state of employment (within certain conditions). Moreover, specific COVID-19 measures may result in the fact that the tele(home)working days are to be disregarded (i.e. these days may not be seen as days performed in another country than the usual country of employment).

Does the employee work more than 25% in his state of residency within the EEA and Switzerland?*

Yes

No

If your employee works more than 25% in his state of residency within the EEA and Switzerland, they are subject to the social security of the state of residence (in the EU Regulation 883/2003). Moreover, specific COVID-19 measures may result in the fact that the tele(home)working days are to be disregarded (i.e. these days may not be seen as days performed in another country than the usual country of employment).

As your employee doesn’t work more than 25% in his state of residency within the EEA and Switzerland, the applicable social security has to be determined on the basis of the simultaneous working principles as set out in the EU Regulation 883/2003. While also taking into account the specific COVID-19 measures. If the employment is located outside the EEA or Switzerland, the situation is not covered by this tool. Possible bilateral social security agreements should be further investigated.

Conclusion

All your responses have been processed and we will send you an overview of the results by email.

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