Coronavirus: extension of agreements on tax treatment and social security affiliation of French and Belgian cross-border workers

Back
Date:
17 Jun 2021

Newsflash

By:
Dorothée David

Coronavirus

  • Extension of the agreements on dealing with tax for cross-border workers who are working remotely

According to the press release published by the Ministry of Finance on 11 June 2021, Luxembourg and Belgium have agreed to extend until 30 September 2021 the amicable agreement on dealing with tax for cross-border workers who are working remotely within the context of the Covid-19 crisis (see our Newsflash of 8 March 2021).

According to the press release published by the Ministry of Finance on 15 June 2021, Luxembourg and France have agreed to extend until 30 September 2021 the amicable agreement on dealing with tax for cross-border workers who are working remotely within the context of the Covid-19 crisis (see our Newsflash of 12 March 2021).

It is worth remembering that the amicable agreement between Luxembourg and Germany is automatically renewed every month for one more month, unless one of the contracting States revokes the agreement at least one week before it is due to expire (see our Newsflash of 11 December 2020). The agreement is therefore valid until further notice.

As of 1 July 2021, the days spent working remotely in accordance with the aforementioned provisions will continue to be ignored when calculating the tolerance thresholds applicable to taxation:

  • for Belgian cross-border workers (24 days), until 30 September 2021;
  • for French cross-border workers (29 days) until 30 September 2021;
  • for German cross-border workers (19 days), if the agreement is not terminated beforehand, and until the agreement is terminated. 
  • Extension of the agreement on social security affiliation for cross-border workers who are working remotely with France and Belgium

According to a press release issued by the Ministry for Social Security on 11 June 2021, Luxembourg and Belgium have agreed to extend the amicable agreement on social security affiliation for cross-border workers who are working remotely until 31 December 2021.

According to a press release issued by the Ministry for Social Security on 15 June 2021, Luxembourg and France have agreed to extend this agreement until 30 September 2021, the date on which the French Parliament has voted to come out of the state of health emergency.

The amicable agreement currently in force concerning social security affiliation for cross-border Belgian, French and German workers will expire on 30 June 2021 (see our Newsflash of 14 December 2020). This agreement removes the need to change affiliation if the 25% threshold stipulated by European legislation is exceeded.

As of 1 July 2021, days spent working remotely due to the Covid-19 crisis will therefore continue to be ignored when determining the applicable social security legislation:

  • for Belgian cross-border workers until 31 December 2021;
  • for French cross-border workers, until 30 September 202