Luxembourg: Telework of Belgian Cross-Border Workers – Extension of Tax Agreement due to Covid-19

Luxembourg has agreed to extend the tax agreement with Belgium until 31 March 2022[1]. The two countries have also agreed that if the agreement is not denounced by one of the competent authorities at least two weeks before 31 March 2022, it will be extended by tacit agreement until 30 June 2022. Thus, the days of telework performed continue not to be taken into account for the calculation of the tolerance threshold for tax matters (34 days as from 1 January 2022[2]).

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[1] Press release of the Ministry of Finance of 10 December 2021.

[2] Addendum of 31 August 2021 to the Convention between the Kingdom of Belgium and the Grand Duchy of Luxembourg for the avoidance of double taxation and the settlement of certain other questions with regard to income and wealth tax, and the Final Protocol relating thereto, signed in Luxembourg on 17 September 1970, as amended by the addenda of 11 December 2002, 16 July 2009 and 5 December 2017.