Preliminary question: option to be taxed as a resident (case C-362/13 (Skatteverket v Hilkka Hirvonen)

There is an interesting request for a preliminary ruling from the Högsta förvaltningsdomstolen (Sweden) lodged on 3 December 2013, case C-362/13 (Skatteverket v Hilkka Hirvonen) :

“Does Article 45 TFEU [free movement of workers] preclude provisions in a Member State’s legislation which mean that a person resident in another Member State — who receives all or almost all his income from the first Member State — can choose between two entirely different systems of taxation, that is to say, either to be taxed at source at a lower tax rate but without the right to such tax relief as is applicable under the ordinary income tax system, or to be taxed on his income under the latter system and thus be able to benefit from the tax relief in question?”.

The case will be relevant for Spain because our tax law also provides a similar option (Article 46 of Royal Decree No. 5 of 5 March 2004 regulating the Consolidated Text of the Tax on Non-Residents).

Pedro Herrera

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