ARTICLE · 21 APRIL 2017

Ruling On Cross-Border Personnel Leasing Published

Wolf Theiss

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Under double tax treaties that follow the OECD Model Convention, the remuneration for posted employees may be taxed both in the state of residence and in the state in which the employment is exercised.

AustriaTax

The Austrian Ministry of Finance published an EAS ruling dealing with tax issues of intra-group cross-border personnel leasing.

Under double tax treaties that follow the OECD Model Convention, the remuneration for posted employees may be taxed both in the state of residence and in the state in which the employment is exercised. However, art. 15(2) of the OECD Model Convention determines that the remuneration shall be taxable only in the state of residence, if, inter alia, (i) the recipient is present in the other state for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned; and (ii) the remuneration is paid by, or on behalf of, an employer who does not reside in the other state.

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