Luxembourg, Belgium Extend Temporary Cross-Border Tax Agreement

Luxembourg and Belgium will extend their temporary agreement designed to avoid the double taxation of cross-border workers until Aug. 31, the Luxembourg Ministry of Finance announced Monday.

The two countries initially agreed on March 16 to amend the rules on double taxation of cross-border workers because of exceptional coronavirus measures that required people to work from home.

• Cross-border workers in Luxembourg and Belgium are normally allowed to work outside of their primary country of employment for no more than 24 days a year before risking double taxation of their salary. The agreement stipulates that from March 11, days worked from home could be considered as days worked in the country of employment.
• Luxembourg has struck similar temporary agreements with Germany and France.
• Pierre Gramegna, Luxembourg’s finance minister, said in a statement that the extension would provide flexibility for Belgian cross-border workers, as well as “guarantee legal certainty to companies in order to organize the exit from the crisis situation under the best conditions.”

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