No C 21/6 Official  Journal  of the  European  Communities 26. 1. 80 
This  price  shall  be fixed  at the same  time  as the 
activating  price  and  in accordance  with  the  same 
procedure. 
In the  case  of undertakings  extracting  protein 
concentrate,  the  abovementioned  aid  shall  be 
granted  only  in proportion  to the  quantities  of 
products  intended  for  use in animal  feedingstuffs 
and provided  that  their  protein  content  is at least 
equal  to a minimum  to be determined  ' Article  2 
This  Regulation  shall  enter  into  force  on 1 March 
1980. 
It shall  apply  to peas  and  field  beans  employed  as 
from  1 May  1980. 
This  Regulation  shall  be binding  in its entirety  and 
directly  applicable  in all Member  States. 
Proposal  for  a Council  Directive  concerning  the  harmonization  of income  taxation 
provisions  with  respect  to freedom  of movement  for workers  within  die Community 
(submitted  by the Commission  to the Council  on 21 December  1979) 
THE  COUNCIL  OF THE  EUROPEAN 
COMMUNITIES, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Article  100  thereof, 
Having  regard  to the proposal  from  the Commission, 
Having  regard  to the  opinion  of the  European  Par-
liament, 
Having  regard  to the  opinion  of the  Economic  and 
Social  Committee, 
Whereas  freedom  of movement  for  workers  is a 
fundamental  objective  of the Treaty; 
Whereas  the present  systems  of income  taxation  have 
different  rules  for  residents  and  non-residents; 
whereas  these  differences  may  penalize  workers  who 
exercise  their  employment  in Member  States  where 
they are not  resident  for tax purposes;  whereas  these 
differences  are  most  acute  in the  case  of frontier 
workers; 
Whereas,  in order  to ensure  greater  freedom  of 
movement  for  workers,  it is essential  to reduce  the 
differences  that  exist  in  the  taxation  of  the 
employment  income  of resident  and  non-resident 
workers; 
Whereas  a frontier  worker  returns  as a rule  daily  to 
the Member  State  where  he resides  and  pays  his 
indirect  taxes  for the most  part  to that  Member  State; whereas  it is much  simpler  for the frontier  worker  to 
have  to deal  only  with  the  tax  authorities  of that 
Member  State;  whereas  these  considerations  militate 
in favour  of taxing  the  frontier  worker  in that 
Member  State  in respect  of his employment  income 
derived  from  another  Member  State; 
Whereas  the  Member  State  in which  a frontier 
worker  exercises  his employment  must  nonetheless  be 
able to levy  a withholding  tax on the income  of such 
a worker;  whereas  the  withholding  tax  should  not, 
however,  be greater  than  that  levied  on the income  of 
a resident  worker  in otherwise  identical  circum-
stances;  whereas  the  Member  State  of which  the 
frontier  worker  is a resident  must  credit  the 
withholding  tax  against  the  tax  it levies  on  his 
employment  income  and  repay  any  excess,  thus 
assuring  taxation  at the  level  prevailing  in that 
Member  State; 
Whereas,  in order  to ensure  the uniform  application 
of these  rules  of taxation,  it is necessary  to establish  a 
common  definition  of 'frontier  worker'; 
Whereas  it may  be  left  to the  Member  States 
concerned  to regulate  by agreement  the  allocation 
between  themselves  of the revenue  accruing  from  this 
taxation; 
Whereas  it is expedient  to lay down  at the same  time 
common  rules  for taxing  the employment  income  of 
other  non-resident  workers,  including  income  from 
public,  private  or social  security  pensions;  whereas 
such  income  should  be taxed  in the Member  State  in 
which  it arises  but  should  not  be subjected  to more 
burdensome  taxation  than  in the  case  of a resident 
26. 1. 80 Official  Journal  of the  European  Communities No C 21/7 
worker;  whereas  there  are grounds  for applying  a pro 
rata rule  to the general  tax reliefs  granted  by that 
Member  State  where  the worker  has  other  income; 
whereas  Member  States  should  be left  free  to 
determine  the  progressive  rate  applicable  to the 
employment  income  by taking  into  account  all the 
worker's  income,  both  positive  and negative,  just as if 
he were  resident; 
Whereas  provision  should  also  be made,  in order  to 
ensure  equal  treatment  between  resident  and  non-
resident  workers,  for  the  case  where  complete 
equality  requires  the worker's  spouse  or children  to 
be resident  in the Member  State  in which  employment 
is exercised  by granting  the worker  the option  to have 
them  so regarded; 
Whereas  the rule  under  which  payments  of interest, 
insurance  premiums,  pension  contributions  etc.,  rank 
for tax  relief  only  when  they  are  made  to an 
institution  resident  in the taxing  Member  State  can 
affect  both  freedom  of movement  for workers  and 
freedom  to provide  services  within  the Community; 
whereas  it is therefore  desirable  to eliminate  this 
discrimination  by making  such  relief  available  in the 
case of payments  to corresponding  institutions  in 
other  Member  States, 
HAS  ADOPTED  THIS  DIRECTIVE: 
PART  I 
General  provisions  and definitions 
Article  1 
Each  Member  State  shall  apply  the provisions  of the 
following  Articles  to: 
— the taxation  of the income  of frontier  workers, 
— the taxation  of the income  of other  non-resident 
employed  persons, 
— the taxation  treatment  of certain  payments. 
Article  2 
1. The  taxes  to which  this  Directive  applies  are 
taxes  on income.  All taxes  imposed  on total  income 
or on elements  of income,  irrespective  of the manner 
in which  they  are levied,  shall  be regarded  as taxes  on 
income. 
2. The  taxes  referred  to in paragraph  1 are at 
present: in Belgium: 
Impdt  des personnes  physiques/Personenbelasting, 
Imp6t  des  non-r£sidents/Belasting  der  niet-ver-
blijfhouders; 
in Denmark: 
Indkomstskat  til staten, 
Kommunal  indkomstskat, 
Amtskommunal  indkomstskat,  x 
Folkepensionsbidrag, 
Semandsskat, 
Saerlig  indkomstskat, 
Kirkeskat, 
Bidrag  til dagpengefonden; 
in Germany: 
Einkommensteuer; 
in France: 
Impdt  sur le revenu; 
in Ireland: 
Income  tax; 
in Italy: 
Imposta  sul reddito  delle  persone  fisiche; 
in Luxembourg: 
Impdt  sur le revenu  des personnes  physiques; 
in the Netherlands: 
Inkomstenbelasting; 
in the United  Kingdom: 
Income  tax. 
3. The  provisions  of paragraph  1 shall  apply  also  to 
any identical  or substantially  similar  taxes  imposed 
subsequently,  whether  in addition  to or in place  of 
the taxes  listed  in paragraph  2. The  Member  States 
shall  inform  one  another  and  the  Commission 
whenever  sucn  a tax enters  into  force. 
Article  3 
1. For  the  purposes  of this  Directive,  the  term 
'resident'  is to be interpreted  according  to national 
tax provisions  and  the  relevant  double  taxation 
agreements. 
2. For  the  purposes  of this  Directive,  'frontier 
worker'  means  any individual: 
(a) deriving  income  from  employment; 
(b) who  exercises  that  employment  in a Member 
State  where  he is not resident;  and 
(c) who  is resident  in another  Member  State  to which 
he returns  as a rule  daily. 
No C 21/8 Official  Journal  of the European  Communities 26. 1. 80 
A frontier  worker  who  is posted  by his employer  to a 
place  inside  the Community  other  than  his usual  place 
of work  so that  he is prevented  from  returning  daily 
to the place  where  he resides  shall  not thereby  lose 
his status  of a frontier  worker  as regards  the States 
mentioned  in the  first  subparagraph,  provided  that 
such posting  does  not exceed  in aggregate  one  third 
of the days  in the calendar  year  for which  he has,  or 
would  have  if the posting  were  disregarded,  the status 
of a frontier  worker. 
PART  II 
Taxation  of frontier  workers 
Article  4 
1. The  employment  income  of a frontier  worker 
shall  be subject  to tax in the Member  State  of which 
he is a resident. 
2. The  Member  State  in which  employment  is 
exercised  may,  however,  levy  a tax on that  income, 
but only  by means  of a withholding  tax.  Where  a 
withholding  tax  is levied  on residents  and  non-
residents  alike,  it shall  not be greater  in the case  of a 
non-resident  than  it would  be for a resident  in the 
same  circumstances. 
3. The  tax which  has  been  levied  in accordance 
with paragraph  2 shall  be credited  against  the tax 
levied  on that  employment  income  in the  Member 
State  of which  the frontier  worker  is a resident.  To 
the extent  that  the  tax  levied  in accordance  with 
paragraph  2 exceeds  the  tax  levied  in the  latter 
Member  State,  the latter  Member  State  shall  refund 
the excess  to the frontier  worker. 
Article  5 
1. The  two  Member  States  concerned  shall  agree 
upon  the  apportionment  between  them  of the  tax 
receipts  and amounts  of refund. 
2. Until  such  time  as an agreement  is reached,  the 
said receipts  shall  continue  to be apportioned  in the 
same  way  as the apportionment  which  would  result 
from  the application  of double  taxation  agreements. 
PART  III 
Taxation  of employed  persons  other  than  frontier 
workers 
Article  6 
The provisions  of Articles  7 and  8 shall  apply  to 
natural  persons  other  than  the  frontier  workers 
referred  to in Article  3 (2) who  are residents  of one 
Member  State  and  who  are taxed  in another  Member State,  without  being  resident  there,  on the.  following 
items  of income: 
— income  from  dependent  personal  services; 
— pensions  and  other  similar  remuneration  received 
in consideration  of past  employment,  including 
social  security  pensions,  as well  as pensions  and 
other  similar  remuneration  paid  by a Member 
State  or a political  subdivision  or a local  authority 
thereof  in respect  of past  services  rendered  to that 
Member  State  or subdivision  or local  authority 
thereof  in the  discharge  of functions  of a 
governmental  nature. 
Article  7 
1. The  items  of income  specified  in Article  6 may 
not be subjected  in the  taxing  State  to any  more 
burdensome  taxation  than  if the  taxpayer  were 
resident  in that  State. 
2. By  way  of derogation  from  the provisions  of 
paragraph  1, the Member  State  may,  in taxing  the 
income  specified  in Article  6 where  a taxpayer  has 
other  income,  grant  that  taxpayer  the  allowances, 
exemptions,  deductions  and  other  general  tax reliefs 
reserved  for resident  taxpayers  only  in the proportion 
that the net income  mentioned  in Article  6 bears  to 
the total  net income. 
That  Member  State  may  also  provide  that  the tax rate 
applicable  to the income  taxable  under  Article  6 is to 
be computed  as if the taxpayer  were  a resident  of the 
Member  State. 
Article  8 
Where  the  tax  payable  on the  items  of income 
specified  in Article  6 in the  taxing  Member  State 
depends  upon  whether  the spouse  or children  of the 
taxpayer  is or are resident  in that  Member  State,  that 
Member  State  shall,  in taxing  those  items  of income, 
grant  the  same  tax  treatment,  if the  taxpayer  so 
requests,  as if the spouse  or children  were  resident  in 
that Member  State. 
The provisions  of the second  subparagraph  of Article 
7 (2) shall  apply  correspondingly. 
PART  IV 
Tax relief  for certain  payments 
Article  9 
1. Where  a Member  State  grants  an advantage  for 
the purposes  of income  tax within  the  meaning  of 
Article  2, whether  by way  of deduction  from  the tax 
base or otherwise,  for payments  made  by a natural 
person  to an insurance  company,  bank,  pension  fund, 
building  society  or any  other  recipient,  such  a tax 
advantage  shall  not  be refused  solely  because  that 
26. 1. 80 Official  Journal  of the  European  Communities No C 21/9 
recipient  is situated,  established  or resident  in another 
Member  State. 
2. The  Member  State  which  is first  mentioned  in 
paragraph  1 may,  as a condition  for  applying  that 
paragraph,  require  the  recipient  to be subject  to 
similar  tax  obligations  to those  which  would  be 
required  of the corresponding  recipient  resident  in its 
own territory. 
PART  V 
Final  provisions 
Article  10 
The provisions  of this Directive  shall  not constitute  an 
obstacle  to the  application  of national  provisions 
necessary  to avoid  fraud  and abuse. Article  11 
Member  States  shall  bring  into  force  the legal  and 
administrative  provisions  necessary  to comply  with 
the provisions  of this  Directive  not  later  than 
1 January  of the third  year  following  the year  of its 
adoption.  They  shall  forthwith  inform  the 
Commission  thereof. 
Article  12 
This Directive  is addressed  to the Member  States. 
Proposal  for a Council  Regulation  approving  two Agreements  in the form  of an exchange 
of letters  between  the European  Economic  Community  and  the Government  of Canada 
concerning  fisheries 
(submitted  by the Commission  to the Council  on 21 December  1979) 
THE  COUNCIL  OF THE  EUROPEAN 
COMMUNITIES, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Article  43 thereof, 
Having  regard  to the proposal  from  the Commission, 
Having  regard  to the opinion  of the European  Par-
liament, 
Whereas  it is in the Community's  interest  to approve 
the Agreement  in the form  of an exchange  of letters 
between  the European  Economic  Community  and  the 
Government  of Canada  concerning  the extension  for 
1980  of their  Agreement  on  fisheries  and  the 
Agreement  in the  form  of an exchange  of letters 
between  the European  Economic  Community  and  the Government  of Canada  concerning  salmon  fishing, 
signed  in Brussels  on ...  ; 
HAS  ADOPTED  THIS  REGULATION: 
Article  1 
The Agreement  in the form  of an exchange  of letters 
between  the European  Economic  Community  and  the 
Government  of Canada  concerning  the extension  for 
1980  of their  Agreement  on  fisheries  and  the 
Agreement  in the  form  of an exchange  of letters 
between  the European  Economic  Community  and  the 
Government  of Canada  concerning  salmon  fishing  are 
approved  on behalf  of the Community. 
The instruments  referred  to in the  preceding 
paragraph  are annexed  to this Regulation.