TAXING THE DIGITAL NOMAD: JURISDICTIONAL CHALLENGES IN THE ERA OF REMOTE WORK AND GLOBAL MOBILITY
Abstract
The expansion of remote work has challenged international tax systems built around territorial presence, residence, and identifiable workplaces. This study examines jurisdictional conflicts affecting digital nomads, focusing on tax residence, income sourcing, treaty allocation, and employer permanent establishment exposure. A qualitative comparative doctrinal approach analyzes legislation, bilateral tax treaties, official guidance, and OECD interpretive materials relating to Indonesia, Portugal, and Thailand. Standardized hypothetical scenarios involving employees, independent professionals, and entrepreneurs are used to identify differences in legal treatment. The findings reveal that residence thresholds and income classification rules vary across jurisdictions, potentially creating overlapping tax obligations and compliance uncertainty. Short-term presence does not automatically confer tax exemption, while foreign payment arrangements do not necessarily establish foreign-source income. Treaty relief remains conditional on eligibility and specific circumstances, and employer permanent establishment questions require separate analysis from personal taxation. The study concludes that digital nomad taxation primarily exposes coordination problems among existing legal frameworks rather than a complete regulatory vacuum. Clearer administrative guidance, consistent documentation, and international cooperation could improve predictability without undermining legitimate taxing rights. Future research should examine actual disputes and administrative practices to assess how these jurisdictional challenges affect compliance across diverse mobility arrangements in increasingly interconnected global economies.
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