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 31 December 2021.
On 19 May 2020, Luxembourg and Belgium signed an amicable 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 cross-border workers are required to work from home due to the measures taken to combat COVID-19 are not taken into account in the calculation of days worked in their 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 the year.
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 welcome the extension of our agreement with Belgium on teleworking for cross-border workers until the end of 2021. This agreement constitutes an essential device in our fight against pandemic, in that it makes it possible to contain the virus, while offering maximum legal security to the 48,000 cross-border workers and their Luxembourg employers. I would like to thank our Belgian friends with whom we agreed in August to generally promote teleworking for our cross-border workers”.