Luxembourg's Ministry of Finance has confirmed that Luxembourg and France have agreed to extend the teleworking taxation agreement for cross-border workers in the context of the fight against the spread of COVID-19 until 31 August 2020.
This agreement, which follows a similar agreement between Luxembourg and Belgium, provides that the working days during which employment was exercised at home as a result of coronavirus-related measures will not taken into account in the calculation of the 29 days during which the remuneration of French cross-border workers remains taxable in Luxembourg.
Luxembourg's Minister of Finance Pierre Gramegna commented: “The agreement on teleworking for cross-border workers with France is an important and effective tool in the fight against the spread of COVID-19 in Luxembourg and in France. Over the past few months, it has made it possible to guarantee the flexibility necessary for the more than 100,000 French cross-border workers and their Luxembourg employers. I am therefore delighted to be able to announce that together with our French partners, whom I would like to thank, we have agreed that this agreement will remain in force until 31 August 2020”.