As previously detailed in our newsflash dated 19 March 2020 (as updated), the Luxembourg Government has once again secured an agreement on “exceptional measures” with the Belgian, French and German Governments regarding the taxation of Belgian, French and German cross-border workers, who would usually be working in Luxembourg but who are currently teleworking from their homes across the border.
Based on that agreement, any days of presence of a cross-border worker at his home, as from 14 March 2020, in particular if such person is teleworking, are not to be taken into account for the calculation of the 34-day (Belgium) or 29-day (France) period. The exceptional measures applying to French and Belgian cross-border workers were initially applicable until 30 August 2020. Since then, six renewals have been agreed between Luxembourg and each of Belgium and France; the most recent renewal agreements were signed on 12 and 15 December 2021 and provide for an extension of these exceptional measures until 31 March 2022.
Furthermore, the measures applying to German cross-border workers were applicable as from 11 March 2020 until 30 April 2020, from which point there has been an automatic monthly renewal, which shall continue until such time as Germany or Luxembourg terminate it. On 6 September 2021, Luxembourg and Germany agreed to an extension of the measures until 31 December 2021. On 7 December 2021, Germany and Luxembourg further agreed upon an extension of the measures until 31 March 2022.
As a reminder, as regards the determination of social security arrangements, the agreements signed between Luxembourg and each of Belgium, France and Germany to maintain the exceptional arrangement not to take into account teleworking days linked to the COVID-19 pandemic, remain applicable until 30 June 2022. We refer you to our previous newsletter article on this topic.