Cross-Border Work: Tax and Social Security - What’s at Stake?

Master the tax and social security challenges related to managing cross-border workers in Luxembourg by gaining a clear understanding of key international principles, tax treaty rules, social security implications, and payroll specificities.

This training equips you with practical insights to correctly apply regulations and manage risks associated with cross-border employment, enabling you to strengthen compliance and confidently navigate a complex cross-border environment.

At the end of this training, participants will be able to:

• Understand the international principles applicable to cross-border workers

• Master the issues and specificities related to the management of cross-border workers in Luxembourg from a tax, social security and payroll perspective

• Identify the risks and obligations inherent to cross-border worker status in the current context

Concept of “cross-border workers”

International tax principles

• Concept of tax residence
• Use of double tax treaties (conflict of residence)
• Taxation of salaries under the OECD Model Convention
• Practical rules under the tax treaties signed with Belgium, France and Germany
• Implications in Luxembourg

Principles relating to Social Security (EC Regulation No. 883/2004)

• General rule
• Numerous exceptions
• Illustration of payroll issues in Luxembourg
• Monitoring of days worked
• Application of a pro rata calculation to remuneration elements
• Other key points of attention
• Exemption procedure

Automatic exchange of information

• Context and legislation
• Scope (income concerned)
• Communication procedure
• Teleworking pre-/post-Covid and the impacts at company level

Business owners, Human Resources managers, Payroll managers, and all interested persons.