Coronavirus: Extension of the Lux-FR tax agreement and Summary of cross-border telework agreements

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Date:
27 Sep 2021

Newsflash

By:
Dorothée David

Coronavirus:

  • Agreement between France and Luxembourg about dealing with tax for cross-border workers who are working remotely extended until 31 December 2021

In a Newsletter released on 24 September 2021, Luxembourg’s Inland Revenue department (the Administration des Contributions Directes, ACD) announced that France and Luxembourg signed an amicable agreement on 23 September 2021, in which they agreed to extend until 31 December 2021 the amicable agreement on dealing with tax for days spent working remotely due to measures introduced to combat the spread of Covid-19, which was due to come to an end on 30 September 2021.

  • Update on the application of cross-border agreements on working remotely beyond 30 September 2021

In terms of tax : the various agreements entered into by Luxembourg with Germany, Belgium and France respectively will continue to apply beyond 30 September 2021 and up to and including 31 December 2021.

As a result, the days a cross-border worker spends working from home due to the measures introduced to combat the spread of Covid-19 in accordance with the above-mentioned agreements, will continue not to be taken into account when calculating the tolerance thresholds currently applicable until 31 December 2021, namely :

  • 19 days for German cross-border workers,
  • 24 days for Belgian cross-border workers,
  • 29 days for French cross-border workers. 

In terms of social security : the agreements entered into by Luxembourg with Germany and Belgium respectively will continue to apply beyond 30 September 2021 and up to and including 31 December 2021.

The agreement entered into between Luxembourg and France currently continues to apply up to and including 15 November 2021 (see our Newsflash of 7 September 2021).

As a result, until these dates, the days a cross-border worker spends working from home due to the measures introduced to combat the spread of Covid-19 will continue not to be taken into account when calculating the threshold of 25% which determines the applicable social security legislation, to avoid a change of affiliation solely due to days spent working remotely connected to Covid-19.