Taxation rules on cross-border teleworking must be updated and simplified

How should wages and company profits be taxed in a way that meets the needs of today's work environment? In an opinion adopted at its July plenary session, the EESC takes up this challenge, while welcoming and encouraging the rise of teleworking. An updated and easy-to-follow set of rules should ensure that employees and employers in Europe do not face multiple taxation or unintended non-taxation because they are working from abroad.

"We are in a new world, where people want to work differently. The EESC fully supports more flexible work and cross-border teleworking situations," says rapporteur Krister Andersson. "But this new paradigm also poses serious challenges for international taxation systems and an efficient European single market". Among other measures, the EESC proposes to create a one-stop-shop, such as exists for VAT, at a European level. An employer would report the number of days teleworkers worked in their country of residence and in the country where the employer is located. With this information, tax authorities would be able to assess in which country income would be taxable, or what part of the income would be taxable in each country. Mr Andersson points out that "This system would allow employees and employers to reduce tax disputes between Member States, and at the same time help ensure that taxes are levied correctly without requiring the individual to file in multiple countries". (tk)