SHARE
COPY LINK

CROSS-BORDER WORKERS

Germany and France extend Covid tax breaks for cross-border workers

Germany and France have agreed to extend the relaxation of tax rules for cross-border workers until the end of the year.

Cross-border workers commute by car but they can for now continue to work at home
Cross-border workers usually have to commute but can for now continue to work at home.. Photo: Fabrice Coffrini / AFP

The agreements between France and the governments of Belgium, Luxembourg, Germany, Switzerland and Italy avoids double taxation issues for anyone travelling across the French border to or from those countries in order to work.

During the pandemic, tax rules were eased to allow French cross-border employees, like their counterparts in Belgium, Luxembourg, Germany, Switzerland and Italy, to work from home without having to change their tax status.

The deals, which were established at the beginning of the health crisis in March 2020, were due to end on September 30th – and would have plunged cross-border workers still working from home because of the health crisis into renewed uncertainty over their taxes.

The latest extension of these agreements means there’s no confusion over where a cross-border worker pays their taxes until December 31st – for example cross-border workers who work in Geneva but live in France, who normally pay their taxes and social security contributions in Switzerland. 

Under normal circumstances, anyone living in France who works in Switzerland can spend no more than 25 percent of their time working from home. If they exceed this time limit, they would have to pay these tax charges tin France rather than in Switzerland, which would be much higher.

The agreements between France and Belgium, Luxembourg, Germany and Switzerland “provide that days worked at home because of the recommendations and health instructions related to the Covid-19 pandemic may … be considered as days worked in the state where [workers] usually carry out their activity and therefore remain taxable,” according to the statement from the French Employment Ministry.

In the case of Luxembourg, days worked from home because of the health crisis are not counted in usual the 29 day limit.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

OPINION & ANALYSIS

OPINION: ID-checks between Sweden and Denmark should not be brought back

Sweden's government on Tuesday announced plans to bring back ID checks on Sweden's borders. Niels Paarup-Petersen, a Malmö MP, has launched a campaign to stop them.

OPINION: ID-checks between Sweden and Denmark should not be brought back

Bringing in ID-checks is illegal, ineffective, and devastating for the labour market in the Öresund region. That the government, despite all this, is pushing ahead with them anyway is almost impossible to understand. 

Once again, the government’s first response to a crisis is to bring back the ID-checks that tear our region in two.

Once again, they’re doing this without giving either the regional government or those operating the transport services a chance to give their input.

Once again, the idea is that Skåne and the Öresund Region should pay the price for solving Sweden’s challenges.

Once again, commuters will have to wait for half an hour at Kastrup. Once again the transport system in Skåne will be wrecked. 

READ ALSO: Sweden to bring back border controls to control Ukraine arrivals

It’s bloody awful, to be frank.

The European Court of Justice has ruled that it is illegal to put the responsibility on transport operators across a Schengen border. The Office of the Chancellor of Justice has come to the same conclusions.

Ukrainians have the right to enter the country, which means that they will not be stopped by the ID controls. If you want to have a better understanding of who is crossing the border, there are still ‘temporary’ border controls in place after six years.

Making the transport operator responsible for ID controls work when applied to ferries and flights, where there is only one place where you can get on or off. When you have continuous traffic, such as with trains or cars, it has a devastating effect on the traffic and on all of the people using them.  

ID checks are completely illegal, unnecessary, and irrational.

Region Skåne, the municipalities in Skåne, and all of my colleagues from Skåne in the national parliament must now all put their feet down. 

ID checks on the Öresund Bridge should not be brought back! 

Niels Paarup-Petersen is an MP representing Malmö for the Centre Party. He was born and grew up in Denmark and has worked for the Öresund Bridge Consortium.

SHOW COMMENTS