EC takes Netherlands to EU court over pension transfer tax
The European Commission on Thursday has decided to refer the Netherlands to the Court of Justice of the European Union (CJEU) as the country taxes the transfer of pension capital to other member states by mobile workers but not domestic transfers.
The EC recalled in a statement that under EU law, mobile workers are free to take up jobs in member states that allow full or partial lump sum out-payments of pensions. Among these, 12 EU countries allow out-payments of pensions as lump sums: Belgium, Denmark, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Austria, Slovakia, Spain and Czechia.
"Taxing transfers of pension capital to these Member States, while not taxing domestic transfers is a serious obstacle to the free movement of workers, the freedom to provide services and the free movement of capital (Articles 45, 56, 63 TFEU). The Dutch legislation in question is, therefore, a restriction of the freedom of movement of workers, the freedom to provide services and the free movement of capital," stated the European Commission.
The decision of bringing the Netherlands before the CJEU comes after two 'warnings' from the institution - a letter of formal notice in November 2012 and a reasoned opinion in July 2018.