Germany, France and Belgium cross-border social security measures in response to the COVID-19 crisis extended to the end of 2020 has been saved
Germany, France and Belgium cross-border social security measures in response to the COVID-19 crisis extended to the end of 2020
18 August 2020
Luxembourg Tax Alert
Since March 2020, Luxembourg nonresident cross-border workers, confronted with new ways of working, have had no other choice but to work from their homes. From mid-March 2020, EU Member States shared the view that the increased use of teleworking due to the COVID-19 crisis would not be taken into account when determining the applicable social security legislation.
It is now clear that, for Germany, France and Belgium, the foreseeable expiry date of this measure has been extended to 31 December 2020, subject to change based on future COVID-19 measures. As such, cross-border employees will continue to be affiliated with the social security system of the Member State where they work (i.e. Luxembourg) until this year-end at least.
This is good news for Luxembourg-based employers and Luxembourg cross-border workers living in Germany, France or Belgium. And, these measures could lead to a broad EU-level agreement before the year is out.
We will keep you informed of any development where tax matters are concerned.
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