Update on the tax and social security situation of cross-border teleworkers as of December 16, 2021

On December 16, 2021, the tax and social security situations of German, Belgian and French border workers with a Luxembourg employment contract and working from home are as follows

From a fiscal point of view:

• Germany and Luxembourg have decided to immunize the number of days of telework, until March 31, 2022. In normal periods, the quota not to be exceeded is set at 19 days.
• Belgium and Luxembourg have decided to immunize until March 31, 2022, the number of 24 days (as of January 1, 2022, this number will increase to 34) which is the quota not to be exceeded in order not to be taxed in Belgium. The Belgian employee can continue to telework without the risk of being taxed in his country of residence, whatever the number of days in home office.
• France and Luxembourg have decided to immunize until March 31, 2021, the number of 29 days which is the quota not to be exceeded in order not to be taxed in France. The Luxembourg employee residing in France can continue to telework without being taxed in his country of residence, whatever the number of days in home office.

From a social security point of viewIn normal times, European legislation provides that if an employee works more than 25% of his working time outside the country of his employment contract, he changes his social security assignment back to that of his country of residence.

• As of December 7, 2021, Germany and Luxembourg have extended the bilateral agreement not to take into account telework days until June 30, 2022 (unless this agreement is denounced by one of the parties by March 16, 2022, in which case the agreement would lapse on March 31, 2022) not to take into account "telework days related to the Covid-19 crisis for the determination of the social security legislation applicable to frontier workers".
• As of December 10, 2021, Belgium and Luxembourg have extended the bilateral agreement until June 330, 2022 (unless this agreement is denounced by one of the parties by March 16, 2022, in which case the agreement would lapse on March 31, 2022), not to take into account "the days of telework related to the Covid-19 crisis for the determination of the social security legislation applicable to frontier workers".
• As of December 14, 2021, France and Luxembourg have also extended the agreement not to take into account telework days until June 30, 2022 (unless this agreement is terminated by one of the parties no later than March 16, 2022, in which case the agreement would lapse on March 31, 2022).