The widespread use of private homes as an office (home office) constitutes significant challenges for the application of the “permanent establishment” concept enshrined in Article 5(1) OECD MC. The question of whether an employee working from home in the source state can create a permanent establishment for the employer has gained significant momentum since the COVID-19 crisis and has since been the subject of an intense and controversial debate in both literature and case law. So far, the discussion has focused on the “at the disposal” requirement under Article 5(1) OECD MC and on whether an employee’s home can be regarded as being at the disposal of the employer. In the 2025 Update of the OECD MC, the OECD took the opportunity to revise its previous position on permanent establishments and remote work. In doing so, it shifted the analytical focus away from the highly controversial “at the disposal” criterion towards the question of whether and under which circumstances an employee’s home may qualify as a “place of business”. Daniel Blum and Valentin Bendlinger take a closer look at the intricate details of the OECD Commentary’s new approach to the use of a home office and the pot...