Germany: Arrangements for cross-border workers extended through March 2022 (COVID-19)

Temporary consultation agreements with neighbouring countries for cross-border commuters

Temporary consultation agreements with neighbouring countries for cross-border commuters

The coronavirus (COVID-19) pandemic presents particular challenges for cross-border commuters who normally commute daily from their country of residence to work in another country. For this reason, the German Federal Ministry of Finance (BMF) has concluded temporary consultation agreements with neighbouring countries for cross-border commuters in order to prevent salaries and wages from becoming taxable in the country of residence of the cross-border commuters due to working from home.

Accordingly, working days for which salary or wages are received and on which cross-border commuters only work from home because of measures to combat the coronavirus pandemic are considered working days spent in the contracting state in which the employees would normally have carried out their work. The agreements apply to working days from 11 March 2020.

Mutual agreements extended

The mutual agreements with Austria, Belgium, France, Luxembourg, the Netherlands, and Switzerland were explicitly extended again in December 2021. In view of the current pandemic situation, these agreements will apply until at least the end of March 2022.

The following consultation agreements are currently in place:

  • Austria and Switzerland: The agreements with Austria and Switzerland are applicable until at least 31 March 2022. They are automatically renewed by one month if not terminated. The two agreements also apply to public sector employees and both include an explanation of situations when a home office is considered a permanent establishment.
  • Belgium: The agreement with Belgium is applicable until at least 31 March 2022. There is no automatic renewal, however an option to do so. Read a December 2021 report
  • France and the Netherlands: The agreements with France and the Netherlands are also applicable until at least 31 March 2022 and are automatically renewed by one month if not terminated.
  • Luxembourg: This consultation agreement is also applicable until at least 31 March 2022 and automatically renewed by one month if not terminated. It is also applicable to public sector employees.
  • Poland: There is a consultation agreement with Poland that is automatically renewed by one month if not terminated. It is also applicable to public sector employees.

Read a January/February 2022 report [PDF 270 KB] prepared by the KPMG member firm in Germany

 

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