background image

Austria and Germany Sign New Agreement on Taxation of Cross-Border Workers During COVID-19 Pandemic — Orbitax Tax News & Alerts

The German Ministry of Finance has published a new agreement signed with Austria on 27 October 2020 concerning the taxation of cross-border workers during the COVID-19 pandemic. The new agreement clarifies and extends the prior agreement signed on 15 April 2020. The main provisions are essentially the same, however, including that in cases where a cross-border worker is required to work from home due to COVID-19, the days spent working from home will be treated as working days in the Contracting State in which the worker would normally be working, if not for COVID-19.

The new agreement applies to working days in the period 11 March to 31 December 2020 and will automatically renew for one month at the end of each month unless one of the competent authorities terminates it through written notification at least one week prior to the beginning the following month.