Link: https://curia.europa.eu/jcms/upload/docs/application/pdf/2022-06/cp220102en.pdf

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PRESS RELEASE No 102/22

Luxembourg, 16 June 2022

Judgment of the Court in Case C-328/20 | Commission v Austria (Indexation of family benefits)

The adjustment of family allowances and of various tax advantages granted by Austria to workers according to their children’s State of residence is contrary to EU law

Such a mechanism constitutes unjustified indirect discrimination based on the nationality of migrant workers

On 1 January 2019, Austria put in place an adjustment mechanism for calculating the flat-rate amount of family allowances and of various tax advantages which it grants to workers whose children reside permanently in another Member State. Those tax advantages include the child tax credit, the Family Bonus Plus, the sole earner’s allowance, the single parent’s allowance and the tax credit for maintenance payments. The adjustment may be made upwards or downwards depending on the general price level in the Member State concerned.

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