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27 April 2005

EFRP: Pension Funds want Tax Obstacles removed





The European Federation for Retirement Provision (EFRP) issued two reports to Commissioner Kovacs on discriminatory tax treatment in respect of occupational pensions. Tax has been identified over the years as a major obstacle for market integration of occupational pensions. In a first report on “discriminatory tax treatment of cross border transfer of pension capital”, EFRP finds that a number of Member States have legislation which may be in breach of the EC Treaty.

The second report summarizes the preliminary conclusions of research that is currently finalised. Main conclusions include that in many Member States local pension funds are granted more favourable tax treatment than foreign pension funds receiving similar income. Interest and dividend payments to local pension funds are either not subject to withholding tax or the local pension fund can benefit from a refund of the tax withheld. In many of these Member States such exemption or refund procedure is not available for pension funds established elsewhere in the EU.

Document


© EFRP - European Federation for Retirement Provision


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