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If you live in the EU and work for Google, you probably actually work for Google's EU-based subsidiary. There's no US-based company involved in the relationship. It's confusing because the company treats all the subsidiaries as one whole, while the law treats the subsidiaries as their own entities.

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AFAIK this misses the point. If a EU citizen is contracted by a US company, but living in the EU they are not subject to US income tax at all, but only to their own state's - and also this might not be legal if the US corp has a EU subsidiary. (If they live in the US they are taxed by the US first and their home country second, but taxes paid in the US are being deducted from the taxes they have to pay in their home country. And, if they are contracted with a EU based subsidiary then they are taxed in the EU only, obviously.)

> If they live in the US they are taxed by the US first and their home country second

That's not universally true. My home country doesn't require any income taxes from me since I neither work nor live there. AFAIK the US is quite unique in that regard that they require their citizens to pay taxes no matter where they are working or living.

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