working from home

Belgium has now extended its tax agreements with all neighbouring countries (France, Germany, The Netherlands and Luxembourg) so that any employee who is currently on a Belgian payroll but working from home due to Corona in any of these countries will continue to pay tax in Belgium as if he or she was actually in Belgium. This agreement applies until 30 June 2021. Background Belgium has concluded a double tax treaty with many countries. On this basis, an employee's professional income is in principle taxed in the country where he or she is employed (with a number of exceptions). Due to the corona crisis, many employees are no longer able to cross the border to work in Belgium. As a result, these employees (are no longer taxable in the normal country of employment (Belgium) but in the country where they live. Tax agreements in response to COVID-19 In this context, Belgium concluded a number of tax agreements with neighbouring countries in May 2020. As a result, the days of employment in the home country remained notionally taxable in the normal country of employment of the employees concerned. i.e. Belgium. These agreements were valid until March 31, 2021. Belgium is now extending [...]