On Thursday, 19 March, France, Germany, Belgium, Luxembourg, and Switzerland agreed to limit as much as possible the consequences of keeping frontier workers at home—due to national containment measures in the face of the coronavirus pandemic—on the tax system that applies to them.
The tax treaties signed by France with Germany, Belgium, and Switzerland provide for exclusive taxation of the salaries of frontier workers in their state of residence, provided that they do not exceed a certain number of days worked outside the border area of the other state.
In a press release, the French Ministry for the Economy and Finance indicates that France has reached an agreement with Belgium and Switzerland so that the days that frontier workers remain at home during this crisis will not be taken into account in this count. Bercy explains that, for Germany, this situation is already covered by the amicable agreement signed with France in 2006.
With regard to Luxembourg, the new Franco-Luxembourg tax treaty provides for an authorised period of 29 days during which French cross-border commuters may telework for their Luxembourg employers without the related remuneration being taxed in France. The French and Luxembourg authorities have agreed that, during the pandemic, teleworking days will not be taken into account when calculating this period.
All of these measures take effect as of 14 March and are applicable “until further notice”, specifies the press release. (Original version in French by Marion Fontana)