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, since 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. Since then, three renewals of agreements have been signed with France and Belgium. The last ones, signed respectively on 9 and 12 March 2021, provide for an extension of this exceptional measures until 30 June 2021.
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 terminates the agreement.
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 31 June 2021 (please refer to our publication dated 15 January 2021).