Brussels, 17/04/2014 (Agence Europe) - On Wednesday 16 April, the European Commission requested that The Netherlands end the discriminatory taxation of dividends received on shares held by insurance companies established elsewhere in another member state or in an EEA country (Norway, Lichtenstein and Iceland). Dutch insurance companies are effectively not taxed on dividends received on shares held in the framework of unit-linked insurances. They can deduct the increase of the obligation to pay the dividends on to their policyholders from the dividends received. This reduces the corporate tax base concerning these dividends to zero, while any withholding tax is credited. However, The Netherlands taxes insurance companies established in the EU or the EEA receiving Dutch dividends on shares held in the framework of unit-linked insurance on the gross dividends, without the possibility of a credit. Following a similar case against Finland, the Commission says that higher taxation of insurance companies established elsewhere in the EU/EEA is incompatible with the free movement of capital. If the Netherlands fails to respond within two months to the reasoned opinion, the Commission may send the case to the European Court of Justice. (EL)