In general, the country of activity has tax jurisdiction. However, this does not apply if:
- The 183-day limit is not exceeded
- Wages are not paid by or for an employer who resides in the country of activity
- Wages are not borne by a commercial operation which the employer maintains in the country of activity
Ascertainment of the 183-day limit varies from one double taxation treaty to another and can be based either on the tax year, the calendar year or a 12-month period.
If these conditions are met cumulatively, tax jurisdiction returns to the country of residence.
In this case, too, there are peculiarities in many double taxation treaties, e.g. for cross-border commuters, supervisory board members, executives as well as in the case of general reversion clauses.
When determining how to count the days, you need to ensure that the actual days spent in the country in question are counted. For instance, if you were in France from 1 March to 31 August (184 days), you exceed the 183-day limit. Any interim holiday in another country is to be deducted from this however!