Taxation: Commission asks THE NETHERLANDS to change tax rules amounting to obstacles to the cross-border transfer of pensions
The Commission decided today to send an additional reasoned opinion to the Netherlands asking it to change three sets of tax rules amounting to obstacles to the cross-border transfer of pension capital and the cross-border provision of pensions. First, foreign pension service providers have to give guarantees, such as collateral or bank guarantee to the Dutch authorities if they transfer pension capital to a foreign provider or if foreign providers want to provide services on the Dutch market. Second, (former) employees have to provide guarantees if their pension capital is transferred to a foreign provider or if they want to buy pension services from a foreign provider. Third, transfers of pension capital to foreign providers by workers taking up employment outside the Netherlands are tax exempt only if the foreign providers assume the responsibility for any tax claims or the taxpayer himself provides that guarantee. These conditions restrict the free movement of citizens and workers, the freedom of establishment, the freedom to provide services and the free movement of capital (Articles 21, 45, 49, 56 and 63 TFUE). If the Netherlands do not act within the next two months, the Commission may decide to refer the matter to the Court of Justice of the EU.