Brussels, 09/01/2007 (Agence Europe) - On Tuesday the European Commission decided to refer Sweden to the European Court of Justice for its discriminatory pension tax legislation.
Under Swedish tax legislation, premiums paid by employers for occupational pension insurance taken with insurers that are established in other EU Member States or the EEA countries, are taxed as salary in the hands of the employee and pension payments are tax exempt; whereas contributions to domestic schemes are exempt and only pension payments are taxed. The Commission considers that this legislation clearly restricts the possibilities for insurers established elsewhere within the EU or EEA to sell insurance policies in Sweden, and dissuades employers from subscribing to foreign insurance policies. The taxation of foreign pension insurance premiums as benefits of the employee makes the subscription to foreign policies unattractive. (ol)