European Court of Justice Issues Preliminary Ruling on Deductibility of Expenses Regarding Cross-Border Employment Taxation

The European Court of Justice (ECJ) March 12 issued a preliminary ruling for Case No. C-150/25, on the deductibility of individual and family expenses regarding cross-border employment taxation. The taxpayer, a Belgian tax resident earning employment income in Belgium, France, and Luxembourg, paid maintenance payments to family members in Belgium and sought full deductibility. Belgian tax authorities allowed the deduction, excluding foreign-source income. The referring Belgian court noted that the other member country of employment didn’t grant a corresponding deduction. Upon request for a preliminary ruling, the ECJ held that Article 45 of the Treaty on the Functioning of the ...