|
By Peter Kleingarn (picture) and Melanie Engel, Atoz *
The uncertainties regarding the taxation of German cross-border workers have been clarified thanks to the mutual agreement between Luxembourg and Germany. The agreement is binding for the German and Luxembourg tax authorities and provides reliable guidelines in relation to the taxation of German cross-border workers.
1. Situation of German cross-border workers
German cross-border workers (i.e., German residents who are employed by a Luxembourg employer and commute to Luxembourg) pay their wage taxes in Luxembourg. That seemed to be clear for the past 50 years. That practice, however, changed in 2010 when the German tax authorities changed their application of...
|