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Image header Agence Europe
Europe Daily Bulletin No. 12487
Contents Publication in full By article 27 / 36
BREACHES OF EU LAW / Taxation

Commission refers Netherlands to Court of Justice because of its system for taxing pension capital transfers

On Thursday 14 May, the European Commission decided to refer the Netherlands to the Court of Justice of the EU because of its rules for taxing the transfers of pension capital by mobile workers.

Under EU law, mobile workers are able to accept jobs in Member States that allow full or partial lump-sum payments of pension benefits. 12 Member States currently allow pension benefits to be paid in the form of lump sums: Belgium, Denmark, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Austria, Slovakia, Spain and the Czech Republic.

The Commission's view is that the Dutch legislation, which taxes transfers of pension capital to these Member States, but not domestic transfers, constitutes a restriction on the free movement of workers, the freedom to provide services and the free movement of capital.

The European Commission opened the infringement proceeding in November 2012. In July 2018, the Commission sent the Netherlands a reasoned opinion asking it to put an end to this practice. As there has been no change in the situation, the Commission has therefore decided to move to the next stage of the proceeding. (Original version in French by Marion Fontana)

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EU RESPONSE TO COVID-19
EUROPEAN PARLIAMENT PLENARY
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ECONOMY - FINANCE - BUSINESS
COURT OF JUSTICE OF THE EU
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