French workers in Luxembourg may get more days of remote work
Alesia Kazantceva, Unsplash
Luxembourg Finance Minister Gilles Roth responded to a parliamentary enquiry concerning the status of the double taxation agreement between Luxembourg and France and the possibilities of increasing the share of remote working for cross-border employees.
The double taxation agreement was signed on 7 November 2022 and ratified by Luxembourg in June 2023. However, France has not yet finalised the ratification procedure. The Luxembourg minister emphasised the importance of completing this process before moving on to discuss further changes to the agreement.
In April 2024, the Luxembourg Ministry of Finance received a technical note to increase the remote working threshold to 40 per cent of annual working hours. However, the implementation of this proposal involves the definition of a compensation mechanism, which requires further analysis and agreement between countries.
These changes could significantly affect cross-border workers, especially those who reside in France but work in Luxembourg. Increasing the permissible proportion of remote working may give more flexibility while maintaining a fair tax regime.
