Following our recent alerts on regional security developments, travel disruption, airspace restrictions, land border considerations, and contingency planning, we are issuing this further update to reflect an emerging next phase of mobility planning for employers with affected populations in the region.
In addition to immediate evacuation and departure considerations, we are now seeing a growing number of individuals—including British nationals considering return to the United Kingdom—assessing temporary relocation, return to home country, or onward movement to third countries while the situation remains unstable. As a result, organizations should now begin to consider not only immigration and travel feasibility, but also the wider implications of employees continuing to work remotely from temporary locations.
Where employees leave their usual work locations and perform duties from another country, even on an unplanned or short-term basis, this may give rise to a range of compliance considerations for both the individual and the employer. These may include income tax, payroll, social security, employment law, corporate tax, data security, and immigration work authorization issues.
This note is for situational awareness and contingency planning only. It is not intended to recommend or encourage movement where local authorities or embassies are advising individuals to remain in place. Any movement should only be considered where necessary, lawful, and safe, and only after checking official guidance, route status, border requirements, documentation implications, and the broader compliance consequences of working from another jurisdiction.
1. Remote work from temporary locations: Shifting from evacuation planning to compliance planning
While immigration entry requirements and route availability have understandably been the immediate focus in the first phase of evacuation planning, employers should now begin to assess the medium-term implications where employees have exited the region and intend to remain temporarily in another country.
We are seeing cases where individuals leave affected locations via land routes through neighboring countries such as Saudi Arabia or Oman and then travel onward to another jurisdiction, or return to their home country, including in some cases the United Kingdom. In these scenarios, employees may seek to continue working remotely while awaiting further developments.
Even where an individual is permitted to enter or remain in a country from an immigration perspective, this does not necessarily resolve the wider compliance issues associated with working there. Remote work from a temporary location may create obligations relating to:
Employers should therefore move from immediate movement planning to case-by-case remote work assessments for employees who are now located outside their usual country of work or assignment.
2. Tax considerations: Increased relevance where individuals return home or remain abroad temporarily
For many employee populations in Gulf countries, tax has historically not been a central issue in day-to-day mobility planning. However, where employees begin working from another jurisdiction, local tax exposure may arise.
This is especially relevant where affected individuals return to their home country or relocate temporarily to another country from which they continue to work. In such cases, employers should assess whether the employee’s presence and work activity may trigger personal income tax obligations, payroll obligations, or employer reporting requirements in the new location.
In broad terms, the key issues to assess include:
In many cases, short-term displacement may not immediately trigger tax consequences. However, the longer the arrangement continues, the greater the potential for tax exposure.
Residence status
An individual’s tax residence status is often central to determining the scope of tax exposure. In many jurisdictions, residence is influenced by the number of days spent in the country during the relevant tax year, often with a 183-day threshold used as a general rule. However, this is not universal, and some jurisdictions may treat an individual as a tax resident earlier depending on their circumstances, including family presence, accommodation arrangements, or nationality.
It is also possible for an individual to be regarded as a tax resident in two countries at the same time. Where a double taxation agreement applies, treaty tie-breaker provisions may help determine treaty residence. These rules are fact-specific and should be reviewed carefully.
Why residence matters
Residence status often determines whether an individual is taxed on worldwide income or only on locally sourced income. In many jurisdictions, residents are taxed on a broader basis, while non-residents may be taxed only on employment income relating to work physically performed in that country, unless an exemption applies.
Where an individual is moving between countries with a double taxation agreement in force, treaty relief may reduce or eliminate double taxation, but relief is not always automatic and may require proactive filings or formal claims.
Employers should therefore review both the domestic tax position and any available treaty relief when employees are working temporarily outside their normal location.
Treatment of compensation and payment mechanics
Where tax becomes due in a new jurisdiction, employers should also consider how taxes will be paid and administered. This may include payroll withholding, annual tax returns, installment payments, or other local processes. In some cases, a foreign employer may need to consider payroll registration or other reporting arrangements in the host location.
Some jurisdictions may also offer favorable regimes, domestic exemptions, or temporary concessions that may help reduce additional tax costs, particularly where the relocation is unplanned or linked to exceptional circumstances. However, such measures vary significantly and should be reviewed on a case-by-case basis.
Failure to account correctly for taxes, withholding, or reporting obligations may result in penalties, interest, or compliance disputes.
3. Social security considerations: Highly fact specific and increasingly important as displacement continues
The current situation also has the potential to affect social security obligations where individuals return home, relocate temporarily to another country, continue working remotely, or cease work temporarily as a result of displacement.
The social security analysis is likely to be nuanced and highly dependent on the individual’s circumstances. Relevant factors may include the employee’s home and host locations, nationality, employing entity, contractual arrangements, whether work continues to be performed, and the expected duration of the temporary arrangement.
At present, national authorities may not yet have published specific crisis-related guidance, which may further complicate the position.
As a general observation, Gulf Cooperation Council (GCC) countries do not typically maintain broad social security agreement coverage with jurisdictions outside the GCC. As a result, where an employee moves to another location and continues working there, a social security liability may potentially arise depending on the countries involved, the duration of the arrangement, and the individual facts.
Employees who are on a leave of absence may, in many cases, see less immediate impact than those who continue performing services from another jurisdiction. However, employees who resume work in a neighboring country or return to work from their home country should have their position reviewed carefully in both locations.
Some countries may provide exemptions, domestic concessions, or bilateral agreement protection that affect whether social security contributions are payable. However, this should not be assumed. The longer the arrangement continues, the greater the likelihood that local obligations may arise.
Particular care may be needed where an employee returns to their home country while remaining employed under a home-country employment contract, as this may increase the likelihood that home-country obligations apply, to the extent they do not already.
4. Wider employer considerations: Employment law, corporate risk, and governance
Beyond tax and social security, employers should also assess wider legal and operational implications where employees continue working from temporary locations.
These may include:
These issues may be particularly relevant where temporary arrangements begin to extend beyond the immediate crisis period.
5. Immigration and travel considerations remain relevant
Although this update focuses more heavily on remote work, tax, and social security implications, immigration and travel feasibility remain a critical part of planning.
Current reporting indicates that some individuals seeking to leave affected locations are exploring land-border travel into countries such as Saudi Arabia or Oman, with the intention of departing the region by air from those countries where commercial routes remain available. Operational conditions remain highly fluid and may change at short notice.
Recent reporting suggests that land border crossings into Saudi Arabia and Oman may be open in many locations, although security procedures, operational conditions, and processing times may vary by crossing.
At the same time, regional airspace availability remains inconsistent, which continues to affect flight planning and onward travel feasibility. Current reports indicate that:
These conditions may affect routing, capacity, flight availability, and the ability to secure onward travel even where immigration entry is legally possible.
Employers should therefore assess both immigration eligibility and route viability when evaluating potential evacuation or onward movement options. Entry into countries such as Saudi Arabia and Oman remains dependent on factors including passport nationality, residence status, visa eligibility, and documentation. Even where entry is possible, onward movement may remain constrained by flight disruption, security developments, and operational uncertainty.
Movement decisions should continue to be reviewed on a case-by-case basis, considering both legal entry requirements and the practical realities affecting travel routes across the region.
We recommend employers now take the following actions for impacted employee populations and travelers:
We continue to monitor developments closely and will share further updates as official guidance evolves.
For the latest updates and practical guidance, please refer to our:
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For immediate assistance or case-specific support, please contact our Crisis Support team at crisis_support@vialto.com, or your usual Vialto contact.
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