The rules governing the taxation of commuters to Luxembourg have changed.
On the 14th June 2011 the German Federal Ministry of Finance published the mutual agreement of 26th May 2011 between Germany and the Grand Duchy of Luxembourg regarding the taxation of commuters to Luxembourg.
The mutual agreement came into force on 27 May 2011 and it applies to all cases which were not finally assessed at that time.
The statement of the German Federal Ministry of Finance dated 12th April 2011 was cancelled.
This agreement ends a long period of uncertainty for German residents working in Luxembourg. However it raises questions in connection with Luxembourg wage taxes and it would be helpful if the Luxembourg tax authorities published guidance on this point.
Statement of the German Federal Ministry of Finance dated 14th June 2011 – IV B 3 – S 1301 – LUX/10/10003
Statement of the German Federal Ministry of Finance dated 12th April 2011 (BStBl 2011, p. 486)
§ 165 par. 1 sentence 2 no. 1 AO (German Tax Code)
For further information or to discuss any of the issues raised, please contact Joachim Menz on +49 89 2422 300.
CELIA Alliance members are identified here. Members of the CELIA Alliance are each independent law firms and do not practice law jointly with any other member of the CELIA Alliance. “CELIA Alliance” and “CELIA” are not trading names. For more information about the CELIA Alliance click here.
Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this newsletter. For further legal information click here.
If you would like to copy or otherwise reproduce this article then you may do so provided that: (1) any such copy or reproduction is for your own personal use or if it is made available to any third party it is done so on a free of charge basis; and (2) the article is reproduced in full together with the contact details, disclaimer and any logos as they appear on each article.