Belgians working in the Grand Duchy of Luxembourg will henceforth be able to carry out part of their activity outside Luxembourg 34 days a year and still remain taxable there. The Council of ministers put the light on Thursday. The intervention should offer employees more flexibility, including in the field of teleworking.
Until today, the so-called 24-day rule applies. It stipulates that frontier workers are taxed in the country where they work, even if they work in another country for a maximum of 24 days a year. The amendment to the double taxation treaty that passed through the Council of ministers on Thursday raises that limit to 34 days a year.
At the same time, the Belgian municipalities receive higher compensation from Luxembourg. Since frontier workers are taxable in Luxembourg and are therefore exempt from taxes in our country, the state and the municipalities where a large number of frontier workers live lose income from personal income tax and municipal excise duties. Therefore, Belgium and Luxembourg long ago agreed on a system of financial compensation. The amount from Luxembourg will now increase from 34 to 48 million euros.