Without the extension, many cross-border workers would soon be covered by social insurance in their country of residence instead of in their usual country of work. The transition period has the same effects as the COVID-19 measures because there is no change of the competent state due to telecommuting of 25% or more in the state of residence. Furthermore, no specific formalities are required by the employer or employee.
The additional period of 6 months allows the administrations, employers and individuals involved to organize themselves adequately and enables the Administrative Commission to further evaluate the specific situation of cross-border activities and to work out structural measures.
The transition period applies to both pre-existing and new cross-border activities. This transitional period only applies to social security, not to the income tax treaties.
If you have any questions about these changes, please contact us. We will be happy to advise you.