Coronavirus: impact on cross-border work Belgium-Luxembourg

Author: Peggy Criel (Legal Expert)
Date:

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.

The Partena Professional website is a channel for making information available in an understandable form to affiliated members and non-members.

Partena Professional strives to provide up-to-date information and this information is compiled with the greatest care (including in the form of Infoflashes).

However, as social and fiscal legislation is constantly changing, Partena Professional cannot accept any liability for the correctness, the up-to-date or the completeness of the information consulted or exchanged via this website.

Further provisions can be read in our general disclaimer that applies to every consultation of this website. By consulting this website, you expressly accept the provisions of this disclaimer. Partena Professional can unilaterally change the content of this disclaimer.