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France/LuxembourgOne less “lock” for border telework
LUXEMBOURG/PARIS – The article aimed at simplifying the tax procedures for the telework of French cross-border workers was adopted at first reading in the National Assembly, details MP Isabelle Rauch at The essential.
The article concerning telework for cross-border workers was adopted at first reading by the National Assembly in France.
AFP
The horizon is clearing for cross-border commuters who are teleworkers. As announced a few weeks ago by the Moselle deputy Isabelle Rauch (Horizons – Ensemble!), France will abolish the “tax lock” by simplifying the reporting of teleworked days to French taxes.
Article 3 of the finance bill was adopted on Wednesday in the National Assembly at first reading. The text must still make the traditional legislative shuttle before its final adoption. “But she is on the right track. Especially since this article has not been the subject of any formal opposition”, welcomes the MP from the majority with The essential.
Concretely, this does not modify anything concerning the tolerance threshold of 34 days, below which cross-border workers who telework do not need to make any declaration. The situation changes, however, for those who exceed this threshold. Thus, Luxembourg companies will no longer have to deduct tax for the French tax authorities, nor to declare monthly the number of days teleworked by the employees concerned. Complicated and costly procedures, especially in terms of time.
Instead, the employer will only have to make an annual declaration. The tax will then be deducted from the employee’s personal account.
And now the social threshold
This simplification does not, however, open the door to unlimited telecommuting French border residents. The social threshold of 25% beyond which an employee finds himself affiliated to the social security of his country of residence remains. “This is the next challenge”, anticipates Ms. Rauch who pleads for “a status of cross-border teleworker at European level”.
Negotiations between France and Luxembourg should also enable progress to be made on this specific point. On Monday, Luxembourg Finance Minister Yuriko Backes (DP) indicated in a parliamentary response that the Ministry of Social Security had formally asked its neighbors (France, Belgium, Germany) to open discussions to raise the threshold to 41%.
“Nothing was possible as long as there was this problem at the tax level, the lifting of this lock constituting the first condition before considering other stages”, concludes Isabelle Rauch.