Your employment income is generally taxed according to the place-of-work principle.
Example
Mr Muller lives in Munster and works for a Dutch company, Monday to Thursday in the Netherlands, and every Friday he works from his home office in Munster. As a result, 80% of his employment income is taxed in the Netherlands and 20% in Germany.
Due to the coronavirus crisis, Mr Muller worked exclusively from his home office in Munster from 15 March to 30 June 2020. Under normal circumstances, he would now have to pay tax in Germany on his entire employment income earned during that period. However, Germany and the Netherlands have entered into a consultation agreement providing that the 80% to 20% split remains unchanged in such a case.
Comparable special arrangements have now been put in place, in addition to the Netherlands, for Austria, Luxembourg, Belgium, France and Switzerland.
The double taxation agreements with Austria, France and Switzerland contain special rules for frontier workers who regularly return to their place of residence each evening. The application of these special rules depends, among other things, on the number of days on which they do not return. Bilateral special arrangements arising from the coronavirus crisis are now in place with all three countries.