Luxembourg, Germany Extend Deal on Taxing Cross-Border Workers

Luxembourg and Germany have extended their deal on the taxation of cross-border workers for another month.

To avoid the double taxation of cross-border workers who have to work from home due to coronavirus restrictions, Luxembourg and Germany signed an agreement in April that stipulates that from March 11, days worked from home could be considered as days worked in the country of employment.

• The agreement, which automatically renews at the end of each month, will stay in place throughout July, Andreas Steier, Bundestag member for Trier and Trier-Saarburg, announced Tuesday.

• The German Finance Ministry says a cancellation isn’t foreseeable at the moment, according to Steier’s statement.

• Luxembourg last week prolonged similar agreements with France and Belgium until Aug. 31. The agreements can be renewed indefinitely but have to be extended periodically.

• Germany has similar agreements with several neighboring countries, including Austria and the Netherlands.