The Commission has also formally requested the Czech Republic and Sweden to amend discriminatory provisions with regard to the taxation of pensions. The discriminatory regimes in question relate to the favourable tax treatment domestic pension insurance schemes receive compared to similar foreign schemes in the Czech Republic, and the discrimination against non-resident pension funds compared to domestic funds when it comes to taxing dividends in Sweden. The requests take the form of reasoned opinions.

Czech law provides more favourable tax treatment for domestic pension insurance schemes than for foreign insurance schemes. The Commission considers that this regime is contrary to the free movement of workers (Article 45 TFEU), to the freedom of establishment (Article 49 TFEU) and to the freedom to provide services (Article 56 TFEU).

In Sweden, dividends paid to non-resident pension funds are subject to a withholding tax of 15% or 30%, depending whether Sweden has a double tax treaty with the country of establishment of the pension fund. Pension funds established in Sweden, however, are exempt from tax on dividends as well as from corporation tax. They are subject to a 15% tax based on a notional calculation of its profits. The Commission considers this to discriminate against non-resident pension funds and to be contrary to the free movement of capital (Article 63 TFEU).

For full details see http://europa.eu/rapid/pressReleasesAction.do?reference=IP/10/1406&format=HTML&aged=0&language=en&guiLanguage=en