Case C‑682/22

LM

v

Ministarstvo financija Republike Hrvatske, Samostalni sektor za drugostupanjski upravni postupak

(Request for a preliminary ruling from the Upravni sud u Zagrebu)

Judgment of the Court (Tenth Chamber) of 23 November 2023

(Reference for a preliminary ruling – Regulation (EC) No 1085/2006 – Assistance granted under the instrument for pre-accession assistance (IPA) – Regulation (EC) No 718/2007 – Article 7(1) and (3) – Conclusion of a framework agreement between the European Commission and the beneficiary country concerned – Rules for cooperation concerning the EU financial assistance granted to that beneficiary country – Taxes and fiscal charges – IPA framework agreement Albania-EC – Contract financed by the European Union – Expert having the status neither of an official nor of a member of staff of the European Union – Article 26(2)(c) – Tax exemption in Albania – Tax residence in Croatia – Income tax in Croatia)

1. EU law – Interpretation – Methods – Provision with clear and precise wording – Obligation – Interpretation ensuring the effectiveness of the provision

   (see paragraph 31)

2. Member States – Retained powers – Direct taxation – Duty to exercise that power consistently with EU law – Scope of the power – Determination of the tax base and the taxable event – Included

   (see paragraphs 33, 34)

3. International agreements – Pre-Accession Assistance Instrument – Framework agreement Albania-EC – Contract financed by the European Union – Direct taxation – Tasks carried out in Albania by an expert having the status neither of an official nor of a member of staff of the European Union – Income paid to the expert in the context of the tasks concerned – Taxation of income by the person’s Member State of residence – Whether permissible

   (Commission Regulation No 718/2007, Art. 7(1) and (3)(k))

   (see paragraph 38, operative part)

See the text of the decision.