The Belgian and German competent authorities on March 22 signed a final extension of the mutual agreement on the tax status of cross-border workers who work from home during the coronavirus pandemic, agreeing that it will no longer apply after June 30, according to information published by the German Ministry of Finance. (German text of extension.)
The mutual agreement was originally signed May 6, 2020, and has been extended nine times. (German text of mutual agreement. Prior coverage.) It concerns the taxation of income referred to in article 15 of the Belgium-Germany tax treaty (as amended through 2002) 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 carried out if not for the pandemic measures.
The extension states that, given that pandemic measures have largely been repealed in both countries, this is the final extension and therefore the mutual agreement’s application is limited to March 11, 2020, to June 30, 2022.