Luxembourg and Belgium have agreed to extend the tax provision for cross-border employees working from home until 30 June 2021.
This marks the third extension for the accords, which allow cross-border workers from Belgium, employed in Luxembourg, to continue working from home without being subjected to the usual tax limit.
In normal times, cross-border workers are entitled to work from home up to 24 days per year, after which they must pay tax in Belgium. This limit has been suspended due to the extraordinary circumstances introduced by the pandemic.
Minister of Finance Pierre Gramegna praised the extension, thanking his Belgian counterparts for their cooperation. He called the agreement an "essential device" in the fight against the pandemic, and said the extension will guarantee "maximum legal security" for tens of thousands of Belgian cross-border workers and their employers alike.