Several bilateral accords have recently been signed between the Luxembourg authorities and those of the bordering countries (France, Belgium and Germany) concerning cross-border worker teleworking in the Grand Duchy. These accords temporarily allow cross-border worker teleworking without impacting their tax or social security regime. Below is a brief summary of the situation:
German cross-border workers (last updated on 29 June 2021). Source
- Social Security: Confirmation of the extension of the accord 31 December
- Tax: The tax treaty is automatically extended each month
Belgian cross-border workers (last updated on 11 June 2021). Source
- Social Security: extension of the bilateral accord through 31 December 2021
- Tax: extension of the bilateral accord through 30 September 2021
French cross-border workers (last updated on 15 June 2021). Source
- Social Security: extension of the bilateral accord through 30 September 2021
- Tax: extension of the bilateral accord through 30 September 2021
Thus, teleworking days related to the 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 fiscal tolerance thresholds applicable outside of the COVID-19 crisis:
- German cross-border workers 19 days;
- Belgian cross-border workers 24 days; and
- French cross-border workers 29 days.