Germany: Arrangements for cross-border workers extended for the last time through June 2022 (COVID-19)

Various consultation agreements between Germany and neighboring countries have been extended for the last time until 30 June 2022

Various consultation agreements have been extended for the last time until 30 June 2022

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 neighboring 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.

Consultation agreements extended and then terminated

The various consultation agreements between Germany and its neighboring countries have been extended for the last time until 30 June 2022, or terminated with effect from that date.

Here is an overview of the existing consultation agreements and their periods of validity:

  • Austria and Switzerland: The agreements with Austria and Switzerland were for the last time extended until 30 June 2022 and terminated with effect from the end of 30 June 2022. 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.
  • Luxembourg and Poland: The agreements with Luxembourg and Poland were terminated with effect from 30 June 2022. Likewise, they are also applicable to public sector employees.
  • The Netherlands, France and Belgium: The agreements with the Netherlands and France were terminated with effect from 30 June 2022. The agreement with Belgium was for the last time extended until 30 June 2022.

Read a May 2022 report [PDF 338 KB] prepared by the KPMG member firm in Germany 

 

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