Belgium and the Netherlands have reached an agreement on the tax treatment of frontier workers working from home. De Telegraaf reports that the Belgian Minister of Finance has confirmed this.
Working from home because of corona
BelgiumWorking from home is currently common as a result of the corona virus. Normally, tax is levied in the country where one works. This would be the country of residence due to working from home, but this can lead to unwanted income consequences.
Suspended temporarily
The above starting point has therefore been temporarily suspended. This means that a Belgian employee who works in the Netherlands but works from home temporarily will still be taxed in the Netherlands. Conversely, a Dutch person who works in Belgium and now works from home is taxed in Belgium. The scheme applies in any case until May 31, 2020 and can be extended thereafter.
Agreement with Germany
A similar agreement had already been concluded with Germany earlier. This agreement also applies in any case until 31 May and can be extended thereafter.
Deviation is allowed
Dutch people who work in Germany and now work from home can also choose to have the days worked from home taxed in the Netherlands. This choice must then be processed in the income tax return 2020. It is still unclear whether Dutch people who work in Belgium can also opt for this.
