Due to the restricted freedom of movement, the COVID-19 pandemic threatens to lead to a sudden change in respect of the taxing right over income from cross-border employment relationships. In order to minimize the personal burdens for cross-border employees, a special agreement was reached through a competent authority agreement between Austria and Germany regarding the interpretation and application of the tax treaty during the COVID-19 pandemic. Thus, the “normal tax status" should be maintained as far as possible during the crisis.
