In a newsletter dated 30 June 2022Belgium confirmed that on 1 July 2022, the Belgian National Social Security Office would be^st introducing a transitional period until 31 December 2022, “so the competent Member State will not change when the 25% threshold for working remotely in the country of residence is exceeded.”.

In a recent announcementGermany also confirmed that there would be no change in the applicable social security legislation for cross-border workers. The press release stipulates that an extension of the application of these rules has been agreed, in order to allow a reasonable period of time for all those affected by these provisions to adapt to the new rules.

In a press release dated 28 June 2022,France also confirmed that the “exemptions are extended until 31 December 2022, no longer because of the health situation, but in anticipation of the Member States finding a permanent common position that takes into account the huge rise in remote working”.

For more information about remote working in relation to social security affiliation for cross-border workers, please refer to our newsflash dated 24 June 2022.

These decisions follow on from the announcement by the Administrative Commission for the Coordination of Social Security Systems in the European Union about plans to introduce a transitional period for social security affiliation for cross-border workers who are working remotely.

• Tax for cross-border workers

The mutual agreements on tax for cross-border workers with France, Belgium and Germany are unlikely to be renewed after 30 June 2022. These agreements allowed for the days a cross-border worker spends working from home due to the measures introduced to combat the spread of Covid-19 not to be taken into account when calculating the tolerance thresholds and for income associated with these days spent working remotely to continue to be taxed in Luxembourg.

As of 1 July 2022^st the thresholds stipulated in the mutual agreements will apply:

• 19 days for German cross-border workers;
• 29 days for French cross-border workers;
• 34 days for Belgian cross-border workers following the approval by Luxembourg of the amendment of 31 August 2021 to the Convention between Luxembourg and Belgium bringing the tolerance threshold to 34 days spent working remotely..

In a press release dated 28 June 2022the French Ministry of the Economy, Finance and Industrial and Digital Sovereignty confirmed that the “annual total of 29 days spent working remotely provided for in the bilateral tax treaty is meant to apply as of 1 July 2022^st Time spent working remotely in the first half of 2022 will not be taken into account when calculating the annual total. Cross-border workers will thus be able to use all the days for remote working provided for in the bilateral tax treaty over a period of six months”.