The Commission has officially asked Sweden to amend its tax rules on pension funds. The Swedish legislation at issue applies a different tax treatment to dividends paid to non-resident pension funds compared to domestic pension funds.

Dividends paid to foreign pension funds by Swedish companies are subject to a withholding tax. Dividends paid to domestic pension funds in Sweden are not subject to withholding tax. In addition, the tax rate on dividends received by resident pension funds will often be lower than for non-resident funds. The Commission considers this treatment to be discriminatory against non-resident pension funds and contrary to EU rules on the free movement of capital. In addition, it can deter non-resident pension funds from investing in Sweden.

The request takes the form of an additional reasoned opinion (the second stage of an infringement procedure). If the rules are not brought into compliance within two months, the Commission may refer the matter to the Court of Justice of the European Union.