EFRP and PwC study on discriminatory taxation on pension funds

02 December 2005

The European Federation for Retirement Provision (EFRP) EFRP and PwC conducted a study of the different tax systems applicable to investment returns of pension funds within the non-compliant Member States and the consequences under EU law. The study identified 26 infringements in 18 different Member States concerning discriminatory taxation of dividend and interest payments to pension funds.

Recent case law indicates that the European Court of Justice is likely to rule in favour of EU taxpayers that have suffered discriminatory tax treatment under the laws of Member States. The infringement procedures should result in legislative amendments aimed at equal taxation of domestic and foreign pension funds.

As a consequence PwC and EFRP ask the European Commission to start infringement procedures under Article 226 of the EC Treaty because those Member States tax foreign pension funds more heavily.

Press release

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