Tax newsletter December 2025

Coming year-end will reduce administrative burden in Intrastat arrivals reporting and decrease reduced VAT rate from 14% to 13.5%. The OECD has updated its Model Tax Convention to clarify when a remote worker’s home office abroad constitutes a Permanent Establishment (PE) and corporate income tax liability for the employing company. The OECD 2025 Model Tax Convention update makes it easier for companies to allow cross-border remote work without automatically triggering a permanent establishment—and thus additional tax obligations—in the employee’s country of residence. The new guidance introduces clear thresholds and practical criteria, helping companies assess and manage their PE risk more confidently.

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