Germany, Belgium Ease Taxing of Cross-Border Workers Under Virus

May 7, 2020, 4:47 PM

Germany and Belgium have agreed on how to tax cross-border workers during the coronavirus pandemic, the German finance ministry announced.

Both countries already have agreements in place that avoid the double-taxation of individuals who live in one country but work in the other, but the Covid-19 outbreak has forced a lot of employees to work from home, which could result in their income being taxed twice.

  • Germany and Belgium agreed that days worked in the country of residence due to coronavirus measures could be counted as days worked in the country of employment, according to the Thursday announcement.
  • The agreement goes into effect Thursday, but will apply to days worked between March 11 and May 31. The agreement will be automatically renewed at the end of each month unless the two countries agree to suspend it.
  • Germany already struck similar agreements with Luxembourg, Austria, and the Netherlands over the last few weeks.

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 Zurich at correspondents@bloomberglaw.com

To contact the editors responsible for this story: Meg Shreve at mshreve@bloombergtax.com; Sony Kassam at skassam1@bloombergtax.com

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