SCHINDHELM

Accelerated digitalisation and the remote working models that have become widespread particularly in the post-pandemic period have brought new discussions to the forefront in international tax law. In particular, the question of whether a “permanent establishment” is created has become an important tax issue where an employer is not resident in the state in which its employees perform their activities. 

The concept of a permanent establishment is a fundamental principle of both international and domestic tax law. It defines the economic presence of a foreign company in a country other than the one in which its headquarters are located. The existence of a permanent establishment may subject the foreign company to specific tax, accounting and social security obligations in the country where it operates.

In particular, for foreign employers with employees working in Italy, the existence of a permanent establishment may trigger the same social security obligations that apply to Italian employers. Conversely, where no permanent establishment exists, the foreign employer may be required to appoint a social security representative or establish a representative office.

The legal framework governing permanent establishments is based on various sources, including Article 162 of the Italian Income Tax Code, Presidential Decree No. 633/72 for VAT purposes and EU Regulation No. 282/2011.

It has become common and widely accepted for individuals in Poland to perform work for employers based abroad. As the holiday season approaches, many employees may also be considering taking on temporary work in Poland (a 'workcation').

However, this flexibility can cause significant tax issues for both employees and employers. We have outlined the key areas of risk associated with remote working from Poland below.

The liability of companies for the products manufactured by them is facing a fundamental change: With the EU Directive (EU) 2024/2853 on liability for defective products and on the repeal of Directive 85/374/EEC, the existing liability regime is, for the first time, to be comprehensively extended to the digital world.

In France, insolvency law is structured as a graduated, court-driven framework that seeks first to prevent business failure, then to reorganise viable companies, and only as a final resort to ensure an orderly liquidation.  

Housing is a central component of social life and is subject to different regulations in many countries. There is no common, uniform tenant protection at an international level, neither in Europe nor worldwide. However, its relevance remains high, not only in Europe, particularly in times of rising rents and housing shortages. There is a call for uniform tenant protection.