As previously detailed in our newsflash dated 19 March 2020 (as updated), the Luxembourg Government had 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 day of presence of a cross-border worker in its residence country, in particular to carry out teleworking, was not to be taken into account for the calculation of the 34-days (Belgium), 29-days (France) and 19-days (Germany) period.
After numerous renewals of their initial agreements – the last of which provided for an extension until 30 June 2022 – Belgium, France, Germany and Luxembourg have decided that this exceptional measure is coming to an end.
Hence, as of 1 July 2022, each teleworking day carried out by cross-border workers shall be taken into account for the calculation of the aforementioned periods. For the computation of such days for fiscal year 2022, cross-border workers should be entitled to the full amount of days, as compared to a pro rata based on the remaining part of the year.
Notwithstanding the above, the agreements signed with Belgium, France and Germany to maintain the exceptional arrangement to count out teleworking days linked to the COVID-19 pandemic for the determination of the social security legislation applicable to cross-border workers shall remain applicable until 31 December 2022 (publication dated 15 January 2021).