15 December 2001

FEE: Aspects of the Taxation of Occupational Pensions

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This paper reviews the aspects of the taxation of occupational pensions in the EU and identifies some of the tax obstacles to the free movement of labor and the freedom to provide services within the Union.
The FEE recommendations are:

The double taxation inherent in the interface between the tax systems which defer taxation until payment of pensions (the majority of EU states) and those systems in which pension contributions are paid out of taxed income and exempt from taxation on payment of pensions (the survey identifies Germany and Austria) should be eliminated by means of double tax treaties.

Contributions to resident qualifying pension schemes by self-employed taxpayers should be tax deductible in all Member States.

Payment of contributions by employers and employees in an EU state to pension schemes resident in other EU states should enjoy the same tax status as contributions to resident pension schemes.

Taxation of pensions in an EU state should be the same regardless of whether the pension arises from a resident or a non-resident source.

The development of Pan-European pension institutions is to be welcomed.

See full FEE paper

© FEE