Policy Position Paper and Legal Framework for Taxation on Remote Workers

This policy paper explores the profound implications of current taxation policies on remote workers in contrast to corporate IT employees. Remote workers benefit from considerably lower remittance taxes, paying as little as 0.25% when registered with PSEB (1% if unregistered), while corporate IT employees face higher payroll taxes ranging from 5% to 35%. This tax disparity has prompted key employees to migrate to remote jobs, depleting talent from corporate sectors and potentially diminishing tax revenues. The paper argues for fair taxation policies advocated by P@SHA to support talent retention and foster sustainable economic growth.