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

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 September 2021.

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 the 29 days during which the remuneration of cross-border workers reamains taxable in Luxembourg.

In order to continue to contain the spread of COVID-19 and to ensure the safety of citizens, Luxembourg and France extended this agreement on Tuesday until 30 September 2021. The old agreement was set to expire after 30 June 2021.

This measure ensures greater predictability for cross-border workers and their employers; there are currently more than 100,000 French residents working in Luxembourg.

Luxembourg's Minister of Finance, Pierre Gramegna, commented: “I welcome this new extension of our agreement with France. The amicable agreement is a continuation of the decisions taken previously. I thank our French partners for this very good cooperation".

This extension of the Franco-Luxembourg agreement follows that of the Grand Duchy's teleworking agreement with Belgium. which has also been extended until the end of September. A similar agreement between Luxembourg and Germany provides that the exemptions will be automatically renewed each month for an additional month, unless one of the contracting parties denounces the agreement one week before its expiry.