Belgium and Luxembourg sign an accord on cross-border workers

On 16 March 2015, the Belgian and Luxembourg Ministers of Finance signed an accord on the taxation of cross-border workers.

The accord lays down a tolerance rule allowing workers resident in one of the contracting states that work in the other contracting state and are physically present in their state of residence for a maximum of 24 days a year to continue to be fully taxable in the state where they usually work.

This way, Belgian residents taxable in Luxembourg on salaried work they do there can, under the accord, carry on work in Belgium for a maximum of 24 days a year and be deemed to effectively do their work in Luxembourg throughout the taxable period. 

The accord institutes a derogation from the principles of article 15 of the Belgian-Luxembourg double taxation treaty.

The tolerance rule applies as from 1 January 2015 but still needs to be set down in a rider to the treaty.