The Dutch and Belgian authorities have reached an agreement on how to interpret the concept of permanent establishment for employees working from home. The agreement provides clarity for employers in both countries on the factors to consider when determining if employees working from home in their country of residence create a permanent establishment. The agreement covers different scenarios such as occasional working from home, structural work from home with the option to work on location, and mandatory structural work from home. The agreement also provides practical guidance on when a permanent establishment is not considered to exist, such as when 50% or less of the work is done from home or when a fixed place of business is used solely for preparatory or auxiliary work. However, if the activities of the permanent business establishment are essential and important to the overall enterprise, they are not considered preparatory or auxiliary activities. The agreement does not affect any exceptions to the concept of permanent establishment or permanent representative.
Source Taxlive
