What Is Tax Residency for Remote Employees - Tekedia

Remote work can change tax residency, so employees may owe tax in more than one place if day-count or home-base tests are triggered.

Residency is often determined by rules like the 183-day test, substantial presence test, center-of-vital-interests analysis, and treaty tie-breakers.

For U.S. citizens and workers abroad, exceptions such as bona fide residence and the foreign earned income exclusion can affect outcomes.

Startups also need to watch permanent establishment risk, since remote employees may create cross-border corporate tax exposure.