AJMS LG Submits Response to OECD Public Consultation on Global Mobility of Individuals
We are pleased to share that AJMS LG has formally submitted its response to the OECD Public Consultation on the Global Mobility of Individuals.
Our response focuses on transfer pricing issues beyond PE creation, particularly how employee mobility interacts with the OECD Transfer Pricing Guidelines on DEMPE functions, control of risk, and value creation:
- DEMPE Function Mobility: When R&D leadership and scientists work remotely across jurisdictions, how should intangible-related residual returns be allocated in line with DEMPE principles?
- Control of Risk Fragmentation: When strategic decisions are taken virtually across multiple locations, how should control over risk be delineated?
- Safe Harbour for Routine Work: Routine remote activities (e.g. coding) should not trigger the same analysis as genuinely value-creating functions (e.g. ML, AI development).
- Developing Country Impact: Digital nomad regimes and remote work raise real concerns around source taxation and talent-driven base erosion.
- Six concrete recommendations: Including guidance on DEMPE mobility, documentation modernisation, and Article 7 / Article 9 sequencing
The way we work has fundamentally changed. International tax rules must now evolve coherently to reflect economic reality.
Our detailed response is attached for reference.
We look forward to continued dialogue with policymakers and stakeholders in 2026.