Luxembourg MPs Approve French Cross-Border Worker Teleworking Amendment

On Wednesday 3 May 2023, the Chamber of Deputies (Luxembourg's parliament) approved the amendment increasing the number of days of teleworking and business travel for French cross-border workers.

Luxembourg's Minister of Finance, Yuriko Backes, and the French Minister of the Economy, Finance and Industrial and Digital Sovereignty, Bruno Le Maire, had signed this agreement on 7 November 2022.

The amendment modifies the tolerance threshold provided for by the France-Luxembourg tax treaty, increasing the number of days of teleworking and business travel authorised for workers resident in one of the two countries and employed by a company located in the other country from 29 to 34 days. Days worked within this 34-day limit will be considered and taxed as if they were worked in the country where the employer is located.

These provisions will be applicable retroactively from 1 January 2023. The Finance Ministry recalled that the entry into force of the amendment requires the ratification of the two signatory countries.

Minister Backes commented: "I am delighted with the unanimous adoption of this amendment by the Chamber of Deputies, which illustrates our common commitment to adapting our agreements to changes in the world of work. The objective is to promote teleworking, by making procedures simpler for French cross-border workers. In this context, I would like to thank my French counterpart Bruno Le Maire for the excellent collaboration."