Pierre Gramegna, Luxembourg's Minister of Finance; Credit: SIP / Yves Kortum

Luxembourg's Ministry of Finance has confirmed that the Grand Duchy and Belgium have agreed to extend their agreement concerning the taxation of cross-border workers in the context of the COVID-19 pandemic, until 30 June 2021.

On 19 May 2020, Luxembourg and Belgium signed an agreement specifying the tax treatment of cross-border workers in the context of the pandemic. This agreement, which has since been extended three times, 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 days worked in the cross-border worker's country of residence.

As part of continued efforts to contain the spread of the virus and ensure the safety of citizens, Luxembourg and Belgium have now decided to extend this agreement until the end of June.

Pierre Gramegna, Luxembourg's Minister of Finance, commented: “I welcome the extension of the agreement between our two countries concerning the teleworking of cross-border workers in the current context marked by the pandemic. The agreement remains an essential device in our fight against the pandemic and its extension will guarantee the tens of thousands of Belgian cross-border workers and their employers maximum legal security. Once again I would like to thank our Belgian partners for the very good cooperation”.