Finance Minister Pierre Gramegna; Credit: SIP / Yves Kortum

Luxembourg and France have agreed to extend their agreement concerning the taxation of cross-border workers in the context of the fight against the spread of COVID-19, until 31 December 2020.

As of Monday 24 August 2020, the Ministry of Finance received official confirmation from the French Ministry of Finance that this bilateral tax agreement will remain in force until the end of the year. The agreement provides that the working days during which the employment was exercised at home due to the measures taken to combat the COVID-19 pandemic, are not taken into account in the calculation of the 29 days during which the remuneration of cross-border workers remains taxable in Luxembourg.

Luxembourg's Minister of Finance, Pierre Gramegna, commented: “This new extension of the agreement follows on from the coordinated measures between our two countries in the fight against the COVID-19 pandemic. It takes into account both the health imperatives, which this situation requires, and the legitimate flexibility towards the employees and employers of our two countries. That is why I can only congratulate myself once again on the good understanding between France and Luxembourg. I would like to thank the government and in particular the Minister of the Economy, Finance and Recovery, Bruno Le Maire, for the excellent collaboration”.

Minister Gramegna 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 Germany is tacitly extended each month, until one of our two states renounces the agreement”.