The ECJ has held that the foreign service allowances paid to a German resident French civil servant are not exempt from a German rule taking them into account in setting the rate to be applied to the taxpayer’s other income, despite complete German exemption for corresponding benefits paid to German civil servants abroad.
An ECJ advocate general has suggested that taking the exempt foreign service allowance of a resident French civil servant into account when fixing the tax rate on her other income is not discriminatory.
