Brussels, 20/01/2014 (Agence Europe) - The European Commission announced on Monday 20 January that, in 2014, it will be ensuring that there is nothing in member states' tax rules that acts as a disincentive for worker mobility in the European Union or discriminates against EU workers, the self-employed or pensioners.
Worker mobility has been identified both as one of the key potentials for increasing growth and employment in Europe. For the EU15, GDP is estimated to have increased by almost 1% in the long term as a result of post-enlargement mobility (2004-2009). One of the main obstacles to people moving to and/or working in another country in the EU is tax problems in either the country of origin or the host country, and the Commission has therefore decided to examine direct tax measures that might penalise people living in a different member state from where they originated. The Commission says that people can suffer tax disadvantages because of the location of their investments or assets, the location of the taxpayer himself or due to the mere change of the taxpayer's residence; in respect of their contributions to pensions schemes, receipt of pensions or transfers of pension and life insurance capital; in respect of their self-employed activities carried-out in another state or due to the mere relocation of such activities; because of the refusal of certain tax deductions or tax benefits; and in respect of their accumulated wealth. With this in mind, the Commission will look at the situation of many different categories of EU citizens: workers (taxation of an individual and his/her partner), the self-employed and also pensioners (pensions may be taxed at a higher rate abroad) or the absence of tax rebates for school fees.
If discrimination or breaches of the EU's fundamental freedoms are found, the Commission will flag them up to the national authorities and insist that the necessary amendments are made. Should the problems persist, the Commission may initiate infringement procedures against the member states in question. A similar initiative was launched in 2012 on tax systems for cross-border workers (see UROPE 10588). (FG/transl.fl)