In a legal opinion, the “BMF” has explained under which circumstances a permanent establishment is triggered by home office activities.
If the private residence of the employee is used externally e.g. as a base for the performance of the contract (e.g. for physical meetings) or as a domestic address for service and repair work, then this triggers a permanent establishment for the employer irrespective of the time spent there (= external use case). The only exception would be that in this case, only preparatory or auxiliary work are carried out in the private residence.
If there is no such external use case, the home office activity triggers a permanent establishment if:
With this newsletter we give an overview of recent or expected changes in the area of Global Mobility in different countries.
If you have any questions about WTS Global or our global services, please get in touch.
We will respond to you as soon as possible.