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For big companies, this is an international problem!

And then tax issues aren't just the employees' income taxes but the company's tax regime.




mitchellh discusses some of the international complexities here:

https://news.ycombinator.com/item?id=17022563

It's definitely way more complicated than adding an employee in a new state.


Absolutely! In that long comment, mitchellh briefly talks about the impact of employing folks in different states on potential corporate tax.

Now imagine you ran one of the big billion+ USD revenue tech companies, and you're not talking about different states in the same country but a distributed workforce in many countries and the political pressures on taxation of e-commerce or similar business models involving intangible goods. One of the key arguments in many a tech company's tax/legal toolbox (usually for arguing they should pay taxes on one jurisdiction instead of another) is in which countries their engineering efforts reside and to what extent.

It's really no wonder that employment legal & finance wins out on totally flexible work arrangements in that situation, for better or worse. Politicians aren't taking any hostages in this context, see eg. France.

To provide an example from sufficient years back: I had to represent the stance of a past employer on compliance with Russian privacy laws to Roskomnadzor[1] in their HQ in Moscow. Through a carefully planted trick they tried to get us to commit to establish just the right kind of representation to be able to tax our revenue from Russian customers. In many countries, the narrative would've been "you have engineers here, you therefore build your products here, you should pay income tax here". Curiously, there isn't really obvious right or wrong in all this since the goods are intangible.

[1] https://www.google.com/search?q=roskomnadzor

(Disclaimer: experience entirely from prior to my current employment at Google, I don't speak for Google in any way and have no insight into these matters at Google.)




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