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Europe

All EU Workers Entitled To Same Tax Benefits, Court Rules

EU citizens working temporarily in another member state should have the same tax benefits as nationals, the European Court of Justice ruled Thursday.

EU citizens working temporarily in another member state should have the same tax benefits as nationals, the European Court of Justice ruled Thursday. In its judgement, the court went against Swedish tax authorities, who had refused to grant exemption from Swedish income tax to a German pursuing a job for a few months with the Church of Sweden. The Swedes argued that the German was not an official resident in Sweden and that legally he was therefore not entitled to Swedish tax benefits for temporary workers. The situation of the German student was legally specific as he paid no taxes in Germany either, being financed partially by his parents and for another part by a scholarship from the German state. However, this is typically the situation which many other EU students or youngsters would find themselves in while working in another member state. The Luxembourg court has now ruled that they should benefit fully from tax allowances in the countries they work. ( EUobserver.com)

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