Belgium and Luxembourg seek modification of the so-called “24-days” rule

In 2015 Belgium and Luxembourg signed an agreement on the application of Article 15 of the Belgian-Luxembourg tax treaty.

Under that agreement, cross border workers can rely on the 24-days rule to avoid that days during which they are not physical present in the work state (Lux./Belgium) are taxed in the state of residence (Belgium/Lux.)

This rule forms an important exception to the general principle that an employee should be physically present in the work state for the state of residence to grant exemption (with progressivity reserve).

From the perspective of a Belgian resident, professional travel outside Luxembourg (incl. homework in Belgium) up to a maximum of 24 days, does not lead to taxation in Belgium of the salary relating to these days.

Given that the authorities of both states consider that the current threshold of 24 days is too low; the authorities are in negotiation of a change, which is high likely to be set on 48 days.

To consult the article by Brigitte Lievens in Over De Grens click here.