Luxembourg's Ministry of Finance confirmed on Tuesday that the Grand Duchy and Belgium have agreed to extend their teleworking agreement for cross-border workers in the context of the COVID-19 pandemic until 31 March 2022.
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, extended several times, provides that the working days during which cross-border workers are required to work from home due to COVID-19 measures are not taken into account in the calculatio of days worked in their country of residence.
Luxembourg and Belgium have decided to further extend this amicable agreement until 31 March 2022. If the agreement is not terminated by one of the competent authorities at least two weeks before this new date, it will be extended by tacit agreement until 30 June 2022.
More than 48,000 Belgian residents working in Luxembourg are affected by this agreement.
Luxembourg's Minister of Finance, Pierre Gramegna, commented: "I would like to thank the Belgian government for the[ir] excellent collaboration throughout this pandemic and especially my counterpart Vincent Van Peteghem, with whom we had already agreed at the end of August to increase the number of days of flexibility from 24 days to 34 days from next year. I would remind you that for the years 2020 and 2021, Belgium and Luxembourg have given up counting the days worked outside Luxembourg, in order to promote teleworking in a pandemic period. The flexibility announced today extends to the first quarter of 2022 the desire not to count the days of teleworking to take into account the fifth wave of the pandemic which is hitting all of Europe".
