Luxembourg's Ministry of Finance confirmed today that the Grand Duchy and Germany have agreed to extend their agreement concerning the taxation of cross-border workers teleworking due to the COVID-19 pandemic until 31 December 2021.
This agreement, which has been extended several times since April 2020, provides that the working days during which employment is exercised at home due to the measures taken to combat COVID-19 are not taken into account in the calculation of the nineteen days during which the remuneration of cross-border workers remains taxable in Luxembourg.
Luxembourg's Minister of Finance, Pierre Gramegna, commented: "I am very happy about this agreement with our German neighbours and thank the German government for the good cooperation in the COVID-19 crisis. The continued validity of the German-Luxembourg mutual agreement until 31 December 2021 gives the 50,000 German commuters and their Luxembourg employers the flexibility and planning security they need to fight the pandemic together".
