As previously stated in our newsflash dated 19 March 2020 (as updated), the Luxembourg Government has agreed on an “exceptional measure” with the Belgian, French and German Governments regarding the taxation of Belgian, French and German cross-border commuters normally working in Luxembourg and now teleworking from their homes.
As a result, as of 14 March 2020, any days of presence of a cross-border worker at his home, in particular to carry out teleworking, are not to be taken into account for the calculation of the 24-day (Belgium) or 29-day (France) period. The measures applying to French and Belgian cross-border workers were applicable until 31 August 2020. By renewal agreements signed with Belgium and France, respectively on 24 August 2020 and 27 August 2020, the measures have been extended until 31 December 2020.
The measure applying to German cross-border workers was applicable as of 11 March 2020 and lasted until 30 April 2020, at which point an automatic monthly renewal took place, which will continue unless Germany or Luxembourg terminates the agreement.
Likewise, on 25 August 2020, agreements have also been extended with the aforementioned countries with respect to social security. Following the agreement signed in July 2020 with Belgium, France and Germany to maintain the exceptional arrangement not to take into account teleworking linked to the COVID-19 pandemic for the determination of the social security legislation applicable to cross-border workers until 31 August 2020, an extension until 31 December 2020 of said arrangement has also been agreed. In concrete terms, a cross-border worker who carries out his work from home will continue to be affiliated to the Luxembourg social security system until the end of the year.