The 2023 French finance bill hereinafter referred to as the “Bill”submitted on 26 September 2022 to the National Assembly is designed to simplify the tax procedures for Luxembourg employers associated with French cross-border workers.

The Bill is designed to improve the implementation of tax deduction at source by foreign employers, in Luxembourg in this case, who have “employees domiciled in France for tax purposes who are not subject to a mandatory social security system in France, but who occasionally work in France, in particular so that remote working will not be penalised for cross-border workers”. ”.

The Bill will change the collection mechanism for income tax on income paid by a Luxembourg employer for work carried out in France by an employee who is not subject to a general French social security system, by replacing the deduction of tax at source with the collection of tax at source. According to this system, the French tax authorities will take a total amount (calculated according to the most recent income that the tax authorities know about) from that employee’s bank account. To do this, the Luxembourg employer will need to “send the authorities on an annual basis the total remuneration taxable in France, determined according to France’s tax rules”. ”.

The 2023 French finance law is due to be promulgated by the President of the Republic and published in the Journal Officiel no later than 31 December.