As previously detailed in our newsflash dated 19 March 2020 (as updated), the Luxembourg Government has once again 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 34-day (Belgium) or 29-day (France) period. The measures applying to French and Belgian cross-border workers were applicable until 30 August 2020. Since then, six renewals of agreements have been signed. The last renewals, signed on 12 and 15 December 2021 respectively, provide for an extension of these exceptional measures until 31 March 2022, with an automatic renewal until 30 June 2022, unless either party terminates the agreements before its expiry. As no such termination has taken place, the agreements with Belgium and France will remain valid until 30 June 2022.
The measure applying to German cross-border workers is 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 terminate the agreement. On 6 September 2021, Luxembourg and Germany have agreed that their agreement will apply until 31 December 2021. On 7 December 2021, Germany and Luxembourg further agreed upon the extension of the agreement until 31 March 2022. Finally, on 23 March 2022, the Luxembourg Government has announced the extension of that agreement until 30 June 2022.
As a reminder, the agreements signed with Belgium, France and Germany to maintain the exceptional arrangement not to take into account teleworking days linked to the COVID-19 pandemic for the determination of the social security legislation applicable to cross-border workers remain applicable until 30 June 2022 (publication dated 15 January 2021).