Coronavirus: Extension of the agreement on dealing with tax for French cross-border workers until 31 March 2021

07 Dec 2020


Eloïse Hullar

According to a press release issued by the Ministry of Finance on 7 December 2020, Luxembourg and France have agreed that the amicable agreement applicable to dealing with tax for remote working within the context of combating the spread of COVID-19 (see our Newsflash of 20 March 2020 and our Newsflash of 27 August 2020), will remain in force until 31 March 2021.

As a result, the days spent working remotely in accordance with the aforementioned provisions will continue not to be taken into account to calculate the tolerance threshold applicable to taxing French cross-border workers (29 days) beyond 31 December 2020 until 31 March 2021.

In addition, the press release specifies that the amicable agreement is extended retroactively to French cross-border workers working for the Luxembourg government.