Coronavirus: agreement between France and Luxembourg about dealing with tax for cross-border workers extended until 30 June 2021

12 Mar 2021


Dorothée David

According to an announcement made by Luxembourg’s Inland Revenue (Administration des Contributions Directes - ACD) on 10 March 2021, Luxembourg and France signed an amicable agreement on 9 and 10 March 2021 according to which the provisions applicable to tax for cross-border workers within the context of the Covid-19 crisis will remain in force until 30 June 2021 inclusive.

As a reminder, the days spent working remotely in accordance with the provisions extended by the amicable agreements between France and Luxembourg dated 16 July 2020 and 7 December 2020 (see our Newsflash of 7 December 2020) are not taken into account to calculate the tolerance threshold of 29 days applicable for the purposes of tax.