Keywords
Summary

Keywords

Freedom of movement for persons – Workers – Equal treatment – Remuneration – Income tax – Income of non-residents who do not receive income taxable in the Member State of residence subject to deduction at source excluding any tax allowance linked to the personal circumstances of the taxpayer – Not permissible

(Art. 39 EC)

Summary

Article 39 EC precludes a Member State’s legislation from providing that

– natural persons who are not regarded as being resident for tax purposes in that Member State, but who receive income there from employment, are subject to taxation levied at source such that the basic allowance or any other allowance or deduction linked to the taxpayer’s personal circumstances is not granted,

– whereas taxpayers resident in that State are entitled to such allowances or deductions at the time of ordinary assessment to tax on their income received in that State and abroad,

– when the persons not resident in the State of taxation have had, in their own State of residence, only income which, by its nature, is not subject to income tax.

(see para. 24, operative part)