The new agreements allow Luxembourg employees who reside in Belgium and France to continue working from home without hitting a pre-crisis legal cap.
Under current legislation, remote working is normally only permitted for a maximum of 24 days each year in Belgium and 29 days in France. Otherwise income tax and social security charges are due in the country of residence. These rules were temporarily suspended during the coronavirus outbreak.
The arrangement with Belgium had been set to expire at the end of June. However, the waiver will now continue until 31 August, Luxembourg’s finance ministry said on 22 June.
Pierre Gramegna, the grand duchy’s finance minister (DP), stated in an announcement:
“This extension of the telework agreement with Belgium is excellent news for the country and is very useful for our companies and employees. It will provide the necessary flexibility to Belgian cross-border workers, and will guarantee legal certainty for companies to organise their exit from the crisis situation under the best conditions. I would like to thank our Belgian partners once again for the great cooperation over the past few months.”
For France, the waiver will also continue until 31 August, the finance ministry announced on 24 June.
Gramegna said:
“The agreement on telework for cross-border commuters with France is an important and effective tool in the fight against the spread of covid-19 in Luxembourg and France. In recent months, it has ensured the necessary flexibility for the more than 100,000 French border workers and their Luxembourg employers.”
The normal limit of 19 days each year for Luxembourg workers living in Germany has also been temporarily suspended under a separate deal.