The freeze on teleworking day quotas has been extended until June 30.
Cross-border workers working in Luxembourg benefit from a new reprieve to take advantage of teleworking. The freeze on teleworking day quotas, initially set for March 31, has in fact been extended until June 30. Enough to take advantage of an advantageous system for another three months before making a tough choice… Since the start of the pandemic, this flexibility has allowed them to develop the share of remote work without tax impact. But from July, the 200,000 Belgians, Germans and French who, before the crisis, crossed the border daily will have to adjust their number of teleworked days if they want to avoid losing tax.
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“Under an agreement between France and the Grand Duchy, the French will not be able to exceed 32 days of telework to remain taxed and socialized in Luxembourg, says Thibault Korchia, head of the firm Avenir Consult. “From 32 to 54 days, they will have to pay their taxes in France, but can continue to pay their social charges in Luxembourg. From 55 days of teleworking in France, they will also have to pay their contributions.And will thus lose the benefit of their particularly interesting status as cross-border workers. In Luxembourg, the average salary reaches 38.10 euros per hour and social security contributions are much lower (employer’s contributions are 2 to 4 times lower)… “The calculation of living comfort will arise for many cross-border employees», says Thibault Korchia.