Luxembourg, Belgium Extend Teleworking for Cross-Border Workers until end December

Luxembourg's Ministry of Finance has confirmed that Luxembourg and Belgium have agreed to extend the agreement of 19 May 2020 concerning the taxation of cross-border workers in the context of the fight against the spread of COVID-19, until 31 December 2020.

The agreement provides that the working days during which the employment was exercised at home as a result of the measures taken to combat the COVID-19 pandemic, can be considered as having been performed in Luxembourg, and will not be considered regarding taxable income in Belgium.

Luxembourg's Minister of Finance Pierre Gramegna commented: “The agreement on the teleworking of cross-border workers with our Belgian neighbours was very important in the fight against the spread of COVID-19. In recent months, it has guaranteed the flexibility necessary for Luxembourg employers and the 50,000 Belgian cross-border workers. I am therefore delighted to be able to announce that the negotiations with our Belgian partners have borne fruit and that we have agreed that the agreement will remain in force until 31 December 2020".