The Luxembourg and French tax authorities have concluded two new agreements that provide greater clarity regarding the taxation of French residents working in Luxembourg. The agreements relate to the 29-day threshold for working days spent outside Luxembourg, outlined in the existing double tax treaty. Further details on this threshold can be found here.
The French and Luxembourg authorities have signed two separate agreements:
The guidelines for calculating the 29-day threshold can be summarized as follows:
The burden of proof, in any case, lays with the taxpayer. In order to demonstrate their physical presence in Luxembourg, French residents can provide documents including the following: an employment contract or employer's certificate referring to the place where the position is actually exercised, attendance lists for meetings or trainings, documents relating to time worked such as time-sheets or recordings, documents relating to travel such as train or plane tickets, invoices for accommodation expenses like accommodation or car rental, or proof of meal expenses like receipts or credit card account statements.
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