03 April 2020 – Signed an agreement with Luxembourg to avoid double taxation

This item is sourced from COVID-19 Policy Watch co-ordinated by Policy. We are in the process of gathering further information and aligning taxonomies for these items.

Type of Intervention: Wage and income support
Sectors Involved: International cooperation
Level of Jurisdiction: National
Lead People/Agency:

Overview: The German Government signed an agreement with Luxembourg to avoid double taxation and prevent tax evasion of cross-border commuters between the two countries during COVID-19. It builds upon existing agreements for cross-border commuters but clarifies how tax authorities will deal with situations where people work from home, receive salary while not working or receive social insurance payments while not working.

The agreement refers to working days between 11 March 2019 and 30 April 2020. After 30 April 2020, it will automatically be renewed from the end of one calendar month to the end of the next calendar month unless terminated by the competent authority of one of the Contracting States at least one week before the beginning of the following calendar month by written notice to the competent authority of the other Contracting State.
Full details here: https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Internationales_Steuerrecht/Staatenbezogene_Informationen/Laender_A_Z/Luxemburg/2020-04-06-entlastung-der-grenzueberschreitend-taetigen-arbeitnehmer-innen-im-hinblick-auf-die-massnahmen-zur-bekaempfung-der-Covid-19-pandemie.pdf?__blob=publicationFile&v=1