Coronavirus: impact on cross-border work Belgium-Luxembourg

Due to the coronavirus measures, Belgian and Luxembourg cross-border workers will most likely work from home, in their country of residence, in the next few days. Does this have an impact on the 24-day tolerance rule?

Tolerance rule

A Belgian resident who is employed in Luxembourg is, in principle, taxable in Luxembourg on the remuneration he receives for that employment. The same rule applies to a Luxembourg resident who is employed in Belgium.

A certain tolerance applies to this general rule. Belgian or Luxembourg cross-border workers who perform their activity for a maximum of 24 days outside their usual state of employment nevertheless remain taxable in their usual state of employment. In this way, the remuneration of a Belgian resident who habitually works in Luxembourg and who is physically present in Belgium for a maximum of 24 days per year to perform an activity there will still be fully taxable in Luxembourg. 

Teleworking due to the coronavirus measures

As a result of the health situation linked to the coronavirus, many Belgian and Luxembourg cross-border workers will be encouraged to work from home in the coming days and weeks.

For the application of the 24-day tolerance rule, the days of force majeure are not taken into account. The Belgian and Luxembourg authorities consider that the current situation due to the coronavirus constitutes such a case of force majeure.

Consequently, it has been decided that as from Saturday 14 March 2020, the presence of a cross-border worker in his place of residence (in particular to telework there) will not be taken into account for the calculation of the 24-day period.

Source: Notice FPS Finance Belgian-Luxembourg Double Taxation Treaty. Exceptional measure concerning telework by cross-border workers.