This master's thesis examines the adequacy of the existing international legal framework for the taxation of employment income in the context of digital remote work and digital nomadism. The purpose of the thesis is to examine whether the framework, which is currently based on the concepts of tax residence and the employee's physical presence, still adequately addresses the challenges posed by contemporary forms of work, and to present proposals for its adaptation.
Following a definition of digital remote work, the thesis presents the fundamental principles of international taxation and the regulation of the taxation of employment income under the OECD Model Tax Convention on Income and on Capital. The central part of the thesis addresses two main issues. Within the concept of tax residence, the thesis examines the impact of increased worker mobility on the existing legal framework, the possibilities for its adaptation, and alternative connecting factors for the taxation of individuals' income, with particular attention devoted to proposals for adjusting the relationship between the principles of residence and source within the existing legal framework. Within taxation based on the source principle, particular attention is devoted to the significance of the employee's physical presence and the adequacy of the existing 183-day rule in the context of digital remote work, including proposals for supplementing this criterion with an additional economic connecting factor.
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