Case C‑15/22

RF

v

Finanzamt G

(Request for a preliminary ruling from the Bundesfinanzhof)

Judgment of the Court (Fifth Chamber) of 7 September 2023

(Reference for a preliminary ruling – Development cooperation – Direct taxation – Income tax – Exemption granted to employees assigned to development aid projects financed from national budgetary resources – Difference in treatment of employees assigned to a project financed by the European Development Fund – Article 63(1) TFEU – Free movement of capital – Article 4(3) TEU – Duty of sincere cooperation – Facilitating the tasks of the European Union – Articles 208 and 210 TFEU – Development cooperation – Obligation to promote policies in the area of development cooperation – Invocability)

1. Free movement of capital and liberalisation of payments – Provisions of the Treaty – Scope – Distribution of financial assistance by the 7th and 9th European Development Funds – Tax practice of refusing a tax exemption on income arising from European financing – Exemption granted only for income financed by means of national public resources – Not included

   (Art. 63(1) TFEU; Fourth ACP-EEC Lomé Convention of 15 December 1989; ACP‑EC Cotonou Agreement)

   (see paragraphs 44-51)

2. Member States – Obligations – Duty of sincere cooperation – Scope – Development aid – Financial assistance under the 7th and 9th European Development Funds – Compliance with the principle of sincere cooperation

   (Art. 4(3) TEU; Fourth ACP-EEC Lomé Convention of 15 December 1989; ACP-EC Cotonou Agreement)

   (see paragraphs 52-56)

3. Member States – Obligations – Duty of sincere cooperation – Scope – Tax practice of refusing a tax exemption on income arising from European financing – Exemption granted only for income financed by means of national public resources – Whether permissible

   (Art. 4(3) TEU; Arts 208 and 210 TFEU)

   (see paragraph 64, operative part)

See the text of the decision.