Cross-border work and telework: social and fiscal tolerances

Author: Anne Ghysels - Peggy Criel (Legal Experts)
Date:

Because of COVID-19 measures, many employees work from home. Some of them work across the border. The temporary fiscal tolerances for these cross-border employees expire on 30 June 2022. Social tolerance, on the other hand, is extended until 31 December 2022.

Social security

In the case of international employment, the fact that an employee performs a substantial part of his work (25%) in the country of residence has consequences: he shall in that case be subject to the social security system of his state of residence.

Since 13 March 2020, the periods of telework performed by employees on Belgian territory due to the coronavirus are exceptionally not taken into account for the determination of the applicable social security legislation and therefore do not affect their social security affiliation.

This measure was already applicable until 30 June 2022. It has now been extended until 31 December 2022.

Fiscal

Belgium and its neighbouring countries concluded agreements on the situation of cross-border workers in the context of the COVID-19 health crisis. The application periods of the agreements with the Netherlands, Luxembourg, Germany and France all expire on 30 June 2022.

As a reminder, these agreements stipulate that teleworking days are considered days worked in the country where the employee is normally employed. Consequently, the remunerations for these days of teleworking are also taxed in the normal country of employment.

As of 1 July 2022, the rules of the double tax treaties will again apply. Remunerations are taxed in the country of employment, the place where the employee actually works, unless the so-called 183 rule applies. In the latter case, the remunerations are taxed in the country of residence.

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