Yuriko Backes, picture in January, says the new telework deal had been eagerly awaited by many employees and companies. Romain Gamba/Maison Moderne

Yuriko Backes, picture in January, says the new telework deal had been eagerly awaited by many employees and companies. Romain Gamba/Maison Moderne

Finance minister Yuriko Backes and her French counterpart Bruno Le Maire have agreed on the details of an amendment that would increase the tax tolerance threshold from 29 to 34 days.

During a working visit to Paris, minister of finance Yuriko Backes (DP) met with French minister of finance, the economy and industrial and digital sovereignty Bruno Le Maire. As well as discussing the economic impact of the war in Ukraine on the economy and the challenges of European and international taxation, the two ministers also went through the details of tax agreement between the two countries regarding teleworking.

They reached a deal that, once formally signed, will allow cross-border workers who live in France and work in Luxembourg to work 34 days outside Luxembourg without being taxable in France. It is expected that this new threshold will apply from 1 January 2023. About 117,000 frontier workers from France work in Luxembourg.

Backes said she was thankful to Le Maire. “This agreement, eagerly awaited by many employees and companies…provides more flexibility, especially when it comes to telework.”