Imposed by confinement, teleworking has made an unprecedented breakthrough in the business world thanks to the Covid-19 crisis. While most companies have resumed face-to-face work, some are continuing the experiment because of the sanitary measures that are difficult to apply within them or the comfort of their employees. In the spring, the tax relaxation granted by
France
,
Belgium
and
germany
has been extended to August 31 in order to accompany the release from confinement. But an extension should still be necessary in view of the evolution of the pandemic in our neighbors – while the Grand Duchy has managed to
curb your own rise
infections in early July.
As such, the recently finalized agreement between France and Switzerland on the social aspect of teleworking suggests an extension of the exceptional measures taken in the name of the fight against the spread of Covid-19. It is indeed the second pitfall of telework after taxation: social charges are a priori due to the tax authorities of the country in which the employee’s professional activity is carried out from 25% of his working time – and his affiliation s ‘is also amended, which would mean for frontier workers the loss of Luxembourg family allowances and the suspension of their contribution to the general pension scheme.
An agreement in principle between Luxembourg and Belgium
Having overcome this social aspect, the fiscal aspect remains to be settled since it should apply again, from the 1is September, the system of thresholds from which cross-border workers have their income taxed by their country of residence (29 days for French cross-border workers, 24 for Belgians, 19 for Germans). The Grand Duchy is therefore dependent on the goodwill of its neighbors.
Discussions seem to be well advanced on the Belgian side since here is the response given to Belgian federal deputy Josy Arens by the Ministry of Finance: “Our administration has contacted the Luxembourg administration concerning the extension of the amicable agreement. It was agreed to extend this agreement until the end of the year, so until December 31, 2020. The extension of the agreement will be signed over the next few days. ”
The Luxembourg Ministry of Finance indicates for its part that it has contacted its counterparts and awaited their response.
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