Luxembourg's Ministry of Finance confirmed on Wednesday that the Grand Duchy and France have agreed to extend their teleworking agreement for cross-border workers in the context of the COVID-19 pandemic until 31 March 2022.

This agreement, now extended for the seventh time, provides that the working days during which employment is carried out from home due to the measures taken to combat COVID-19 are not taken into account in the calculation of the 29 days during which the remuneration of cross-border workers reamains taxable in Luxembourg. Around 110,000 French residents working in Luxembourg are affected by this agreement, which was set to expire on 31 December 2021.

Unless the agreement is terminated by one of the contracting parties at least one week before 31 March 2022, these exemptions will be automatically renewed for a period of three months, i.e. until 30 June 2022.

Luxembourg's Minister of Finance, Pierre Gramegna, commented: “I welcome this new extension of our amicable agreement with France. It offers more legal certainty to employers and employees of both countries. I would like to thank our French partners for this very good cooperation".