Recently, several bilateral accords have been signed between the Luxembourg authorities and those of the bordering countries (France, Belgium and Germany) concerning the teleworking of the Grand Duchy of Luxembourg’s cross-border workers. These accords temporarily allow the teleworking of cross-border workers without impacting the workers’ social security regime.
Below is a brief summary of the situation:
German cross-border workers (last update on 6 September 2021). Source
- Social Security: extension of the bilateral accord until 31 December 2021
- Tax: extension of the bilateral accord until 31 December 2021
Belgian cross-border workers (last update on 22 September 2021). Source
- Social Security: extension of the bilateral accord until 31 December 2021
- Tax: extension of the bilateral accord until 31 December 2021
French cross-border workers (last update on 1 September 2021). Source
- Social Security: extension of the bilateral accord until 15 November 2021
- Tax: bilateral accord bilateral ends on 30 September 2021; whether this accord will also be extended remains to be seen
Thus, the teleworking days related to COVID-19 crisis continue not to be taken into account to determine the social security legislation applicable to the workers concerned.
As a reminder, these are the tolerance thresholds applicable for tax purposes without regard to the COVID-19 crisis:
- German cross-border workers 19 days;
- Belgian cross-border workers 34 days (following the Gäichel XI summit of August 2021); and
- French cross-border workers 29 days.