Only a day after France, on 7 December, announced that cross-border workers would be able to work remotely without double taxation until the end of March 2021, Belgium followed suit.

Usually, the limit of remote working days for cross-border workers from Belgium is capped at 24. For all additional days of working from home, cross-border workers would have to pay the difference between the tax rate in Belgium and Luxembourg taxes. However, as a result of the pandemic, this rule has been suspended for 2020 in order to allow staff to work from home if possible and avoid unnecessary travel. 

On Monday, Belgium’s government spokesperson Yves van Laethem had urged his residents to avoid travelling to Luxembourg, stating that the high rate of new infections in the grand duchy might be to blame for the rising number of cases on the Belgian side of the border. 

Although the prospect of a vaccine at the beginning of the new year offers some light at the end of the tunnel, a return to old habits is not on the horizon yet, and employees are still being urged to work from home if possible. Accordingly, during his visit to Luxembourg on Tuesday, Belgium’s newly appointed deputy prime minister and finance minister, Vincent Van Peteghem, signed the extension of the tax agreement with Luxembourg finance minister Pierre Gramegna (DP).

“This is excellent news, which gives tens of thousands of Belgian cross-border workers and their employers maximum legal certainty and greater predictability for the organisation of their work schedules,” Gramegna said. 

Apart from France and Belgium, Luxembourg had also signed a tax agreement for 2020 with neighbouring Germany, where the number of days cross-border workers are allowed to work remotely is usually also capped at 24. However, it remains to be seen if Germany is going to follow steps taken by Belgium and France in order to also extend its tax agreement with the grand duchy.