Coronavirus: Clarifications about remote working for Belgian and German cross-border workers

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Date:
11 Dec 2020

Newsflash

By:
Eloïse Hullar

According to a press release issued by the Ministry of Finance on 8 December 2020, the amicable agreement of 19 May 2020 between Luxembourg and Belgium on the situation for cross-border workers within the context of combating the spread of Covid-19 (see our Newsflash of 20 May 2020 and Newsflash of 25 August 2020), has been extended until 31 March 2021.

According to a press release issued by the “Administration des contributions directes” (The Tax Administration, ACD), the amicable agreement of 7 October 2020 between Luxembourg and Germany on dealing with tax for cross-border workers within the context of the Covid-19 crisis, replaces the agreement of 3 April 2020 (see our Newsflash of 24 April 2020). The amicable agreement applies from 11 March 2020 until 31 December 2020. After 31 December 2020, it will automatically be extended for a month at a time until it is revoked by one of the competent authorities. The agreement is therefore valid until further notice.

As a result, the days spent working remotely in accordance with the aforementioned provisions continue not to be taken into account to calculate the tolerance thresholds applicable to taxation:

  • for Belgian cross-border workers (24 days), until 31 March 2021;
  • for German cross-border workers (19 days), until either party revokes the agreement in question, and;
  • for French cross-border workers (29 days), until 31 March 2021 (see our Newsflash of 7 December 2020).