France, Italy Sign COVID-19 Cross-Border Worker Tax Agreement

By Hans Esser, for 07 August, 2020

France and Italy have signed an agreement to clarify the tax treatment of cross-border workers' income during the COVID-19 pandemic.

The agreement provides for an exceptional concession for workers who would typically carry out work in the other state but for COVID-19-related restrictions on movement. It states that days worked at home in the state of residence, on behalf of an employer located in the other contracting state, are considered as days worked in the state in which the person would have carried out their employment in the absence of COVID-19 measures.

The agreement relates to paragraphs 1 and 4 of Article 15 of the 1989 double tax agreement between France and Italy. The provisions of the agreement take effect for income earned from March 12, 2020, until August 31, 2020. It may be extended if both states agree.

Tags: Tax | Double Tax Agreement (DTA) | France | Italy | Individual Income Tax |


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