Luxembourg and France will extend their special cross-border workers taxation agreement until Aug. 31, Luxembourg’s Finance Ministry announced Wednesday.
The accord was introduced to avoid the double taxation of cross-border workers who have to work from home due to coronavirus restrictions. Cross-border workers can normally work from home 29 days a year before their salary becomes taxable in their country of residence as well as their country of employment.
- The agreement stipulates that days worked from home from March 14 can be counted as days worked in the country of employment.
- Pierre Gramegna, Luxembourg’s finance minister, said in a statement that the agreement was an “important and effective tool” in the fight against the spread of the coronavirus. Over the last few months, he added, it has given “necessary flexibility for more than 100,000 French cross-border workers and their employers in Luxembourg.”
- The Grand Duchy extended its agreement with Belgium on June 22, and has a similar temporary agreement with Germany.
Check out Bloomberg Tax’s country-by-country roadmaps covering direct and indirect tax developments.
To contact the reporter on this story: Barbara Tasch in Luxembourg City at correspondents@bloomberglaw.com
To contact the editor responsible for this story: Joe Stanley-Smith at jstanleysmith@bloombergtax.com;
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