INSIGHT: Covid-19 – Positive Tax Measures for Luxembourg Companies and Employees

Over the past days and weeks, the Luxembourg government has introduced a number of measures to deal with the spread of the Coronavirus and to guarantee the continuity of the Luxembourg economy.

On March 17, 2020, as part of the implementation of these measures, the Luxembourg tax authorities made several positive announcements for Luxembourg taxpayers. These announcements were then followed on April 3, 2020 by a draft law addressing, among other things, the extension of deadlines in tax, financial and budgetary matters in the context of the Covid-19 crisis. Finally, the Luxembourg government, anticipating the potential negative tax implications for cross-border workers who have to work from home during the crisis, reached an agreement with Belgium, France and Germany in this regard.