1. Reimbursement of expenses
As long as the measures of the National Security Council are in force, employers may grant a temporary home working allowance to their employees. This monthly allowance of maximum EUR 126.94 is free of tax and social security contributions. Every employee who works from home can benefit from this allowance, regardless of their position. Please note that for employees who already receive an expense allowance for telework, double use must be avoided.
The ruling commission has published a model of a ruling request for employers who wish to request a ruling in this matter (https://www.ruling.be/nl/nieuws/aanvraag-thuiswerk-covid-19).
2. Internationally active employees
For Belgian employees who normally work abroad, working from home means that they will suddenly carry out their activities in Belgium for an indefinite period of time. These homeworking measures will undoubtedly have a fiscal impact. After all, according to the normal rules of double tax treaties, the remuneration corresponding to the days that a Belgian tax resident (structurally) works at home is taxable in Belgium.
For cross-border activities in Luxembourg and France, special regimes exist, such as the 24-day rule in the relationship with Luxembourg and the regime for French frontier workers in Belgium. Additional measures are now implemented.
Increased tolerance regarding the 24-day rule between Luxembourg and Belgium
The 24-day tolerance means that Belgians employed in Luxembourg can work outside of Luxembourg for 24 days per calendar year, i.e. at home or in other countries, but still remain fully taxable in Luxembourg. Belgium therefore does not tax the remuneration for these days. This rule also applies vice versa for Luxembourgers working in Belgium.
It is essential to accurately count the 24 days. After all, once the 24-day limit is exceeded, the normal rules apply. For more information, please refer to our previous newsletter.
The Belgian and Luxembourgish authorities are of the opinion that the current situation constitutes a case of force majeure and that, as of Saturday 14 March 2020, the days worked from home should not be taken into account for the 24 days limit (source click here). An end date for this temporary measure has not yet been set for the time being.
However, it seems that if an employee exceeds the 24 days outside this period of 'force majeure', Belgium will tax the salary relating to all the days of homeworking (including those during the period of force majeure). This measure is therefore not a free pass and employees will have to pay extra attention to the 24-day limit this year.
Measures for French cross-border workers
The special regime of cross-border working means that French workers are taxable in France for the remuneration for their activities in the Belgian frontier zone, provided that they do not work outside of the frontier zone – e.g. at home in France – for more than 30 days a year.
The Belgian and French authorities have recently confirmed that the current situation constitutes force majeure (source click here). As of Saturday 14 March 2020, therefore, the days worked at home in France do not need to be taken into account. For the time being, this agreement does not contain an end date either.
For Belgians working in France, the special cross-border workers arrangement with France has been abolished since 2007.
We will keep you informed of further developments. Do not hesitate to contact us for more information:
Katrien Bollen - Senior Associate (katrien.bollen@tiberghien.com)
Mona Vera - Associate (mona.vera@tiberghien.com)