Exceptional measures for cross-border workers between France and Luxembourg
As a result of the health situation due to the COVID-19 crisis and the measures taken to limit the spread of the virus, many French cross-border workers will be requiredto telework more in the coming days and weeks.
Since the entry into force of the new Franco-Luxembourg tax treaty, signed in 2018, French cross-border workers can telework from France for up to 29 days for the benefit of their Luxembourg employer without the remuneration being taxed in France.
The French and Luxembourg authorities consider that the current coronavirus situation constitutes a case of force majeure. It has therefore been agreed that, as ofSaturday, 14 March 2020, the presence of a worker at home to carry out a work-related activity there will not be taken into account when calculating the 29-dayperiod. This measure is applicable until further notice.
The specific arrangements for the application of these decisions, which take effect asof 14 March 2020, will be specified at a later date.
Pierre Gramegna, Minister of Finance, stated, 'I am thrilled that we have reached this agreement with our French partners, which is not only excellent news for the morethan 100,000 French cross-border commuters and our businesses, but also animportant illustration of the solidarity between neighbouring countries and EU Member States in the face of the COVID-19 pandemic'.
Press release by: Ministry of Finance
Translation by: Luxembourg Chamber of Commerce