What are the key OECD changes on remote work and cross-border tax risk?

In late 2025, the OECD updated its Model Tax Convention and Commentary to provide clearer guidance on when cross-border remote working may create a Permanent Establishment (PE) for an employer. This reflects the growth of international remote work since the pandemic. The new commentary clarifies how to interpret a home office or other location under Article 5 and introduces practical factors (such as time spent, business activity and “commercial reasons”) that tax authorities should consider when determining if a taxable presence exists.