Agreement between Belgium and the Netherlands about the taxation of cross-border labour to face COVID-19 emergency

Case Study Category: CBCCase Study Tags: Belgium, COVID-19, Labour Market, and Netherlands

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  • Specific measures on taxation of cross-border labour between Belgium and the Netherlands to face COVID-19 emergency.

  • Belgium and the Netherlands have a tax treaty, by which the revenues of cross-border workers are taxed in the country where they work. Due to the Covid19 pandemic, lots of cross-border workers are “obliged” to work from home. The existing treaty doesn’t foresee in an exception, which means that cross-border workers wouldn’t be taxed in the country where they work, but in the country where they reside.

  • Belgium and the Netherlands have concluded a separate agreement in order to remedy this. The working from home days between 11 March 2020 until 31 May 2020 will be considered as days where the cross-border workers have worked in the country of work. As a result, the country of work continues to impose taxes on the revenues. This agreement can be extended beyond the 31 May 2020. There are also specific clauses about the taxation of temporary unemployment benefits due to Covid19.

  • 2020

  • European Committee on Democracy and Governance (CDDG)