Economy & Politics

Belgian tax compensation postponed to 2021

The visit of the Federal Minister of Finance to Luxembourg on Tuesday did not allow us to unblock a file pending since March. The payment of 91 million to border municipalities has not been recorded, unlike the extension of teleworking.

Jean-Michel HENNEBERT

Jean-Michel HENNEBERT

The visit of the Federal Minister of Finance to Luxembourg on Tuesday did not allow us to unblock a file pending since March. The payment of 91 million to border municipalities has not been recorded, unlike the extension of teleworking.

For his first official visit to Luxembourg as Belgian Deputy Prime Minister, Vincent Van Peteghem wanted to make an impression. In the end, the new Federal Minister of Finance will not have succeeded entirely since no agreement has been reached on an issue that has been pending for nine months. That of the payment of tax compensation due by the Grand Duchy to Belgium under the rules of the Belgian-Luxembourg Economic Union.


Road Trip N4, Nationale 4 Belgium, here: N 50 ° 02.666"EO 05 ° 34,152" Martelange, Foto: Marc Wilwert

If, at the end of October, an agreement seemed close for the payment by Luxembourg of an envelope of 91.1 million euros to the Belgian border municipalities, the situation appears to be blocked again. The fault of the exchanges still in progress on the 2019 statement.


Expected on a firm footing by the border municipalities which have been waiting since last March for an envelope of 91.1 million euros for the year 2019, the latter should not be released before the next Gaïchel intergovernmental meeting which will take place “in 2021 “, According to the official statement released on Tuesday.

In other words, the Belgian and Luxembourg governments did not agree on “the final count” of the overpayment on the Grand-Ducal side. A disagreement which also pushes the official text to announce that “the calculation methods for the years to come” will be reviewed. Understand that the two States interpret the method of calculating the device renewed in 2002 differently. A lack of political agreement which places the neighboring Belgian municipalities in a complicated financial situation, since they are highly dependent on subsidies from the Grand Duchy. For the municipality of Arlon alone, this represents a shortfall of nearly seven million euros.


Until March 31, 2021, French cross-border commuters will be able to continue working from their home without tax consequences. And that whether they are employed in the public or private sector.


Consolation prize, Vincent Van Peteghem leaves all the same with the extension of teleworking for the 47,000 border residents of the Kingdom. And this, until March 31, 2021. Announced the day after the extension of work for French border workers, the measure taken on Tuesday at Senningen Castle therefore continues the system in place since August. This means that Belgian residents of Luxembourg companies are therefore officially authorized to exercise their mission from their home without the 24-day tax tolerance threshold being impacted.

Note that the decision validated with the Belgian government comes a few hours after the health authorities of the Kingdom advised their nationals not to go to areas at high risk of covid. And “especially in the Grand Duchy of Luxembourg”. To date, the only thing missing is an agreement with Germany to authorize the 45,000 border crossers from across Moselle to continue their activities without financial penalty.


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