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 September 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 been extended several 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.
In order to continue to contain the spread of COVID-19 and to ensure the safety of citizens, Luxembourg and Belgium have decided to extend this agreement until the end of September.
This measure ensures greater predictability for cross-border workers; there are currently more than 48,000 Belgian residents working in Luxembourg.
Luxembourg's Minister of Finance, Pierre Gramegna, commented: “I thank the government of Belgium which has just announced that the administrative tolerance in tax matters for teleworking will be extended until 30 September 2021, which is good news for employees and companies during COVID".