Luxembourg-France Teleworking Agreement Extended until end-March 2021

Luxembourg's Ministry of Finance has confirmed that the Grand Duchy and France have agreed to extend their agreement concerning the taxation of cross-border workers in the context of the COVID-19 pandemic, until 31 March 2021.

The agreement provides that the working days during which employment was exercised at home due to the measures taken to combat COVID-19 are not taken into account in the calculation of the 29 days during which the remuneration of cross-border workers remains taxable in Luxembourg.

In addition, the scope of this agreement has been extended to include cross-border workers working for the Luxembourg state; this applies retroactively. From now on, cross-border workers in the private and public sectors are covered by this measure.

Luxembourg's Minister of Finance, Pierre Gramegna, commented: “While the prospect of an upcoming vaccination is a good cause for hope, we must not forget that the process will still take some time. We must therefore remain very careful and stay the course in our efforts against the virus. The Franco-Luxembourg agreement on teleworking for cross-border workers was an essential device in our fight, in that it made it possible to contain the virus, while offering maximum legal security to employers and employees in our two countries. I therefore welcome the fact that the French government has acquiesced to our request to extend the agreement until 31 March 2021. This extension once again illustrates the good understanding between our two countries and is a sign of true solidarity. I would like to warmly thank the Minister of the Economy, Finance and Recovery, Bruno Le Maire, for the excellent collaboration”.