Germany has extended until March 31, 2022, the provisions of its mutual agreements with Belgium and the Netherlands concerning the tax status of cross-border workers who work from home during the coronavirus pandemic, according to information published December 21 by the German Ministry of Finance.
The respective agreements, which have been extended several times, were previously extended to December 31.
Belgium-Germany Extension
The Belgian and German competent authorities on December 17 agreed to extend their mutual agreement signed May 6, 2020. (German text of extension. German text of mutual agreement. Prior coverage.) It concerns the taxation of income referred to in article 15 of the Belgium-Germany tax treaty and states that, with some stipulations, the days that cross-border workers spend working from home because of the pandemic measures will be considered working days in the country in which the work would normally have been performed if not for the pandemic measures.
Germany-Netherlands Extension
The Dutch and German competent authorities on December 17 agreed to extend their mutual agreement signed April 6, 2020. (German text of extension. German text of mutual agreement. Prior coverage.) It clarifies the provisions of article 14 (income from employment) and article 17 (pensions, annuities, and social security payments) of the Germany-Netherlands tax treaty, stipulating that days spent working from home because of the pandemic measures will be considered working days in the country in which the work would normally have been performed if not for the pandemic measures.