Judgment_paragraph 31 · BU v État belge (C-35/19)

31It is important to note, from the outset, that it has been consistently held that, whilst direct taxation falls within their competence, the Member States must nonetheless exercise that competence consistently with EU law (see, to that effect, judgment of 23 January 2014, Commission v Belgium, C‑296/12, EU:C:2014:24, paragraph 27 and the case-law cited). Thus, although the Member States are at liberty, in the framework of bilateral agreements for the avoidance of double taxation, to determine the connecting factors for the purposes of allocating powers of taxation, that allocation of powers of taxation does not allow them to apply measures that are contrary to the freedoms of movement guaranteed by the TFEU. As far as concerns the exercise of the power of taxation thus allocated, the Member States must comply with EU rules (see, to that effect, judgment of 14 March 2019, Jacob and Lennertz, C‑174/18, EU:C:2019:205, paragraph 25 and the case-law cited).