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Belgium and Luxembourg Agree to Relax Rule on Teleworking for Cross-Border Workers — Orbitax Tax News & Alerts

Luxembourg's Ministry of Finance has announced that officials from Belgium and Luxembourg met on 31 August 2021 to discuss tax agreements between the two countries and agreed to promote and facilitate teleworking for cross-border workers by relaxing the so-called 24-day rule with a further 10-day extension. From 2022, cross-border workers will be allowed to exercise work activity for up to 34 days outside their usual country of activity while remaining taxable in that country. The amendment was signed on 31 August and is meant to provide greater flexibility, especially in the post-COVID-19 period.

The two sides also reportedly discussed the further extension of the agreement concerning the taxation of cross-border (frontier) workers during the COVID-19 pandemic, which is currently scheduled to expire on 30 September 2021. The agreement essentially provides 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. Details of any further extension of this agreement will be published once available.