On 25 January 2021, the Tax Department issued Application Guidance No. 07/2021 which relates to tax residency and permanent establishment considerations in the context of the COVID-19 pandemic.

Application Guidance No. 07/2021 confirms that the provisions stipulated in the Application Guidance No. 04/2020 (issued on 27 October 2020) continue to proportionately apply in the year 2021 for as long the global special measures relating to COVID-19 pandemic are in force.

Please refer to the Tax Alert issued by EY, dated October 2020 for more information.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.