Payroll Newsflash

Homeworking measures

insight featured image
In terms of fiscal measures, the exceptional Covid-19 measures put in place through mutual agreements with the border countries to enable homeworking have ended on 30 June 2022.
Contents

During the Covid crisis period (03/17/2020 to 06/30/2022), agreements were reached between the border countries to freeze fiscal and social measures in order to promote / enable homeworking.

With the epidemic slowing down, these tax agreements end on 06/30/2022.

From a fiscal point of view, from July, the tolerance threshold of days worked abroad for non-resident employees is fixed as follows:

  • Belgium 34 days
  • Germany 19 days
  • France 29 days (*Currently under discussion for an increase to 34 days)

It is important to remind that all days worked abroad should be considered for this calculation (training, homeworking, business trips, etc.).

If the threshold is exceeded by a French cross-border commuter, the company must register in France in order to declare the taxes due and proceed to a withholding tax (PASRAU = “prélèvement à la source pour les revenus autres”), for the days worked from France.

On the other hand, German and Belgian employees must declare any exceeding of threshold via their personal declarations.

From the social security point of view, the tolerance that allowed employees to work more than 25% in their country of residence is effective until 12/31/2022.

After that, it is important to remind that in case of salaried activity, the affiliation must be made in the country of residence as soon as the employee performs more than 25% of his activity there (working time or remuneration).

 

Contact

We are at your disposal to assist you in case of exceeding of threshold, for the implementation of administrative formalities and the calculation with our cross-border colleagues. Please contact us for any questions: HRpayroll@lu.gt.com.