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 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 renewals of agreements signed with Belgium and France, respectively on 24 August 2020 and 27 August 2020, the measures were extended until 31 December 2020, and most recently until, 31 March 2021.
The measures applying to German cross-border workers was applicable as from 11 March 2020 until 30 April 2020, since which point an automatic monthly renewal has been in place, which will continue unless Germany or Luxembourg terminate the agreement.
Likewise, on 25 August 2020, agreements have been concluded with the aforementioned countries with respect to social security. An agreement was signed in July 2020 with Belgium, France and Germany to maintain the exceptional arrangement whereby teleworking days linked to the COVID-19 pandemic would not be taken into account for the determination of the social security legislation applicable to cross-border workers until 31 August 2020. This was extended until 31 December 2020 and now a further extension until 30 June 2021 has been agreed.