The European Court of Justice rules on tax deductions for charities

Published: February 3, 2009

On January 27, 2009, the European Court of Justice (“ECJ”) issued its decision in Hein Persche v Finanzamt Lüdenscheid. The ECJ examined whether a tax deduction for cross-border gifts is encompassed by the free movement of capital guaranteed by European Community law.

As summarized in the ECJ’s press release:

where a body recognised as charitable in one Member State satisfies the requirements imposed for that purpose by the law of another Member State and where its object is the promotion of the very same general public interests, so that it would be likely to be recognised as charitable in the latter Member State, the authorities of the latter Member State cannot deny that body the right to equal treatment [for tax deductibility] solely on the ground that it is not established in its territory.

Related content

Press release of the court ruling

Full text of Court’s decision