This article analyses the necessity to adapt the OECD Model Tax Convention (OECD Model) for remote work. It argues that a legally binding agreement must be reached on two fundamental aspects: tax liability criteria for remote workers’ earnings and conditions determining when an employee’s remote work creates a permanent establishment (PE) for the employer. The article investigates the current regulation of these issues in the OECD Model, identifies problem areas and proposes reforms. In particular, it suggests a reformulation of tax liability determination for income from remote-working employment based on a reconsideration of the “source state” concept. Additionally, the article proposes creating an ad hoc decision tree to provide a clear and efficient method for verifying the potential existence of a PE due to an employee’s remote work.