This thread about hybrid working got me wondering. Do management and employees need to be in Luxembourg (and not frontaliers) because the *employer* requires it to satisfy a tax, regulatory or an ‘effective management and control’ test?

If so this would further explain why employers NEED staff to do their jobs on the office, (or at the least, from a Luxembourgish home.)

If you work in corporate law or tax you’d know what I’m talking about I’m sure. Would love to hear from you.

Related article but doesn’t answer my question on whether effective management and control plays a factor
https://today.rtl.lu/news/think-lab/a/1757879.html

[thread](https://reddit.com/r/Luxembourg/comments/pcmwmi/back_to_office_whats_your_employers_current_status/)

3 comments

  1. There are 2 tax impact linked to the home office :
    – the income tax impact for an employee who is working more than 29 days for France or 24 for Belgium and 19 for Germany, outside Luxembourg. The income tax of their home will prevail
    – the social contribution impact for an employee working more than 20% outside Luxembourg, then the social contribution of his home will be applicable
    This is the social contribution that create this mess. In Luxembourg the facial contribution is 15% for the employee and the same for the employer, while in France it is 25% for the employee and 50% for the employer. You understand then why you Luxembourgish employer doesn’t want you to continuously working from home.

  2. There are requirements but these are more or less on hold for the time being because of the pandemic. For example, cross-border agreements on social security allow for unlimited remote work without additional consequences for the employer until end of September (likely to be extended). In the thread you mention, a few redditors are asked to return early September. Was there a legal requirement, it would, first, be invoked, and second, apply to everyone.

  3. I know some banks require that high profiles executives reside in Luxembourg, so that they will not spill the beans if the Belgian government locks them in jail for tax evasion.

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