On 3 February 2023, the Luxembourg government submitted to the Luxembourg Parliament (Chambre des Députés) draft law No. 8159, aiming at ratifying the recent amendment to the Double Tax Treaty between Luxembourg and France (the “DTT”) on remote workdays, as agreed and signed on 7 November 2022 in Brussels (the “Draft Law”).
Increase of the remote workdays tolerance threshold for cross-border workers
The Draft Law foresees the increase of the remote workdays tolerance threshold for cross-border workers from 29 to 34 days for the application of Article 14 of the DTT pertaining to employment income and allocation of taxation rights. By application of this increase of the tolerance threshold, cross-border workers, tax resident in France within the meaning of the DTT, employed in Luxembourg and exercising their salaried activity for up to 34 days outside of the Luxembourg territory, shall remain subject to tax in Luxembourg on such employment income.
Further, the 34 remote workdays tolerance threshold is extended to persons covered by Article 18, paragraph 1) b) of the DTT, relating to public functions. Consequently, a French tax resident of French nationality, or holding dual French and foreign nationalities (except Luxembourgish), employed with the Luxembourg State is now covered by the tolerance threshold.
Entry into force
Upon adoption of the Draft Law, these amendments will apply as from 1 January 2023.
Share on
