Tax Treaty concluded between Belgium and Luxembourg – The 24-day limit officially becomes the 34-day limit
In line with the OECD Model Convention, the treaty for the avoidance of double taxation concluded between Belgium and Luxembourg applies the ‘Work State’ principle. This means that a resident of a country working in another country is taxable in the country where the activity is performed. The Work State principle implies that a Belgian
Update COVID-19 and cross-border employment: Agreements with France and Luxembourg: extended until 31 March 2022
With reference to our previous newsflashes regarding this topic, the idea behind the COVID-19 agreements lies in the fiction that salaried workers who work from home due to travel restrictions remain taxable in the state where they previously exercised their professional activity before the outbreak of the corona crisis. However, this tax fiction strictly applies
Cross-border employment Belgium-Luxembourg: “24-days” rule becomes “34-days” rule
In our newsflash of 20 June 2019, we referred to the negotiations regarding the double tax treaty concluded between Belgium and Luxembourg, with respect to the taxation of individuals working in a cross-border context and more specifically on the possible relaxation of the existing tolerance of 24 days. On 31 August 2021, the Belgian Prime Minister, Alexander De Croo
Update COVID-19 and cross-border employment: agreement with Luxembourg extended
In our newsflash of 28 August 2020 we announced the extension of the mutual agreement between Belgium and Luxembourg, which includes a “force majeure tolerance” for cross-border workers in relation to COVID-19 (travel) restrictions.
Update COVID-19 and cross-border employment: agreements with Luxembourg and the Netherlands extended
We refer to our previous newsflashes regarding the specific agreements that Belgium has concluded with almost all of its neighboring countries (Germany, the Netherlands, France and Luxembourg). These agreements implement a mutual “force majeure tolerance” for cross border employees in relation to COVID-19 (travel) restrictions. A fiction is created in relation to the employment income
Update COVID-19 and cross-border employment: agreements with Germany and the Netherlands extended
As announced in our previous newsflashes, Belgium has concluded several agreements with almost all of our neighboring countries (i.e. Germany, the Netherlands, France and Luxembourg). These agreements implement a mutual force majeure tolerance for cross-border employees in relation to the COVID-19 (travel) restrictions. Based on the specific Belgian-German agreement of 6 May 2020, if certain
Update COVID-19 and cross-border employment: agreement between Belgium and Luxembourg on home working
As highlighted in our previous newsflashes, Belgium has recently concluded mutual agreements with the Netherlands, Germany and France regarding a “force majeure” approach for cross-border workers. An agreement with Luxembourg was still missing. However, the Belgian government has now published the Belgian-Luxembourg agreement recognising the ‘force majeure’ character of the COVID-19 health crisis and introducing
COVID-19: no general “force majeure” tolerance for cross-border employment
In our newsflash of 13 March 2020, we highlighted that since the COVID-19 outbreak many companies find themselves confronted with questions regarding unforeseen and forced changes in the working pattern of employees who perform activities in surrounding countries (such as Luxembourg, The Netherlands, Germany and France). One of the main questions that arises is whether the
