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 30 June 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.
As part of continued efforts to contain the spread of the virus and ensure the safety of citizens, Luxembourg and France have now decided to extend this agreement until the end of June.
Luxembourg's Minister of Finance, Pierre Gramegna, commented: "I welcome this new extension of our agreement with France until 30 June 2021. The Franco-Luxembourg agreement on teleworking for cross-border workers makes it possible to contain the virus and offers maximum legal security for employers and employees in our two countries. This extension once again illustrates the good understanding between our two countries, and I would like to thank the French government and in particular the Minister of the Economy, Finance and Recovery, Bruno Le Maire, for the excellent collaboration".
The Finance Minister specified: “Thus, Belgian, French and German border workers and their employers are assured of the necessary predictability in the months to come. I would like to remind you that the agreement with Belgium was extended until 30 June 2021 last week and that our agreement with Germany is tacitly extended every month, until one of our two states renounces the agreement".