The Luxembourg government admitted to having relayed “incomplete and inaccurate” information regarding taxation on overtime carried out in Luxembourg.
A new double taxation agreement between Germany and Luxembourg came into force on 1 January 2024, with additional, significant changes agreed on 11 January.
The agreement implies a tax increase for any German cross-border workers who work overtime in the Grand Duchy.
Last week, banking union ALEBA criticised the fact that German cross-border workers would effectively be worse off through the agreement, as they could not claim an allowance…