CORONAVIRUS: new arrangements for granting short-time working, extension of the Belgium-Luxembourg agreement on tax treatment of frontier workers

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Date:
22 Jun 2020

Newsflash

By:
Dorothée David

1. Form available online and new process for allowing short-time working related to the economic recovery

In a press release issued on 20 June 2020, the Government reiterated the fact that the new process for allowing short-time working in businesses affected by the Covid-19 crisis will come into force in July and remain in place until 31 December 2020.

Within this context, information about the new process for short-time working related to the economic recovery, as well as the online form for applying for short-time working according to this new system up until 31 December 2020, are now available on Guichet.lu, with its own dedicated Frequently Asked Questions section.

The information available on Guichet.lu on 20 June 2020 includes the deadlines for submitting applications for short-time working related to the economic recovery are as follows:

  • for July 2020: from 20 to 26 June 2020 inclusive,
  • for August 2020: from 1 to 12 July inclusive,
  • for September to December inclusive: no later than the 12th day of the month before the requested short-time working period. For example, no later than 12 August for applications for short-time working for September.

The benefits of short-time working can under no circumstances be granted retroactively.

2. Extension of the agreement between Belgium and Luxembourg about dealing with tax for cross-border workers within the context of the Covid-19 crisis

On 19 June 2020, the competent authorities in Luxembourg and Belgium decided to extend the provisions of the amicable agreement signed on 19 May 2020 about cross-border workers within the context of combating Covid-19 until 31 August 2020.

You can find this information on Luxembourg’s Inland Revenue department’s website (Administration des Contributions Directes).