Community tax: Exclusion of the non flat rate education allowance from the assessment basis for the minimum subsistence rate

This administrative notice concerns officials and other staff who are liable to Community tax.

The Heads of Administration have decided to exclude the non flat rate education allowance from the assessment basis for the minimum subsistence rate, so as to avoid cases where the reimbursement of school fees paid by officials or other staff is diminished by the levying of Community tax.

INTERNAL COMMISSION DIRECTIVE

At their 253rd meeting on 10 September 2008, the Heads of Administration approved Conclusion 255/08 (see annex), which applies within the Commission from 1 October 2008.

Claude CHENE

Annex

Luxembourg, 11 September 2008

CONCLUSION 255/08

APPROVED BY THE HEADS OF ADMINISTRATION
AT THEIR 253rd MEETING ON 10 SEPTEMBER 2008

The Heads of Administration have agreed the following:

1. Article 6(2) of Regulation (EC) No 260/68⁽¹⁾ provides that the application of said Regulation shall not have the effect of reducing salaries, wages and emoluments of any kind paid by the Communities to an amount less than the minimum subsistence rate as defined in Article 6 of Annex VIII to the Staff Regulations.
    
2. The non flat rate education allowance is included in the assessment basis laid down for the application of Article 6(2) of Regulation No 260/68.
    
3. The number of beneficiaries of the application of Article 6(2) of Regulation No 260/68 and of the minimum subsistence rate guarantee has greatly increased following the recruitment of contract agents. Many colleagues who are just outside the scope of application of the above provisions cannot get reimbursed for the education fees which they have paid because of the inclusion of the allowance in the comparison basis.
    
4. Under these circumstances, the non flat rate education allowance shall no longer be included in the comparison basis for calculating the above minimum subsistence rate after the end of the transitional period laid down for lump sum payments in Article 16 of Annex XIII to the Staff Regulations.

This Conclusion shall apply from 1 October 2008.

By the Heads of Administration

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Footnotes

⁽¹⁾ Regulation (EEC, Euratom, ECSC) No 260/68 of the Council of 29 February 1968 laying down the conditions and procedure for applying the tax for the benefit of the European Communities (OJ L 056, 04/03/1968 p. 8 - English special edition: Series I Chapter 1968(I) p. 37).