On June 30, 2021, the tax and social security situations of German, Belgian and French cross-border commuters with a Luxembourg employment contract and working from home are as follows
From a fiscal point of view:
- Germany and Luxembourg automatically renew the agreement (unless one of these two countries denounces it) on the immunization of the number of telework days. In normal periods, the quota not to be exceeded is fixed at 19 days.
- Belgium and Luxembourg have decided to immunize until September 30, 2021, the number of 24 days which is the quota not to be exceeded in order not to be taxed in Belgium. The Belgian employee can continue to telework without risking to be taxed in his country of residence, whatever the number of days in home office.
- The same applies to France and Luxembourg, with a quota of 29 days.
From a social security point of view, in normal times, the 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 June 29, 2021, Germany and Luxembourg have extended the bilateral agreement not to take into account teleworking days until December 31, 2021, not to take into account "teleworking days related to the Covid-19 crisis for the determination of the social security legislation applicable to frontier workers".
- As of June 11, 2021, Belgium and Luxembourg have extended the bilateral agreement until December 31, 2021, not to take into account "the days of teleworking related to the Covid-19 crisis for the determination of the social security legislation applicable to frontier workers".
- As of June 15, 2021, France and Luxembourg have also extended the agreement not to take into account telework days until September 30, 2021.