Coronavirus: work from home, what fiscal impact for cross-border workers?

Work from home (WFH) is currently one of the preventive measures implemented by employers to fight against the spread of the coronavirus. ALEBA has been asked several times in the last couple of days by its delegates about WFH and its potential tax impact, especially for cross-border workers.

First ALEBA would like to recall that its main concern is to ensure that employers do everything in their power to protect the health of employees. Even the important fiscal aspect remains secondary.

On this point, however, as a reminder, the French, German and Belgian Governments have generally agreed with the Grand Duchy of Luxembourg a maximum quota of working days per year, authorized to work outside of Luxembourg, without tax impact for the employees.

If the health situation related to Covid-19 does not worsen, the few days worked from home (currently often quarantines of ten days) will be deducted from the balance of days available for the rest of the year, and this will not have any tax impact.

If the health situation worsens, WFH could logically increase, and ALEBA will invite each staff delegation to ask their employer to ensure that there is no financial impact for employees.At this point, it will be necessary to review how these activities should moreover be qualified.

This topic, among others, will be discussed with the Minister of Labor, Dan Kersch, during an upcoming inter-union meeting.


Luxembourg, 5th March 2020.