Decoding Home-Office PE: OECD's 2025 Framework And India's Reservations

Since the onset of COVID-19, remote working arrangements have expanded rapidly, leading to widespread acceptance of work-from-home models. While this shift has resulted in several operational advantages, the simultaneous restrictions on cross-border travel have compelled many Multi-National Corporations ('MNCs') to reassess their workplace strategies and transition from traditional physical setups to predominantly virtual modes of functioning.

With the rise of remote working arrangements across organizations, it becomes pertinent to determine whether such arrangements by employees in India would result in the creation of a Permanent Establishment ('PE') of the MNCs in the Indian soil. The article maps what has been laid down by the Organization of Economic Cooperation and Development ('OECD') and India's position and the distinction between the two in determination of a PE in context of remote working arrangements.