The Commission has requested The Netherlands to end what it views as the discriminatory taxation of dividends received on shares held by insurance companies established elsewhere in another Member State or in an EEA country (Norway, Lichtenstein and Iceland).

According to the Commission, Dutch insurance companies are effectively not taxed on dividends received on shares held in the framework of unit-linked insurances. However, The Netherlands taxes insurance companies established in the EU or the EEA receiving Dutch dividends on shares held in the framework of unit-linked insurance on the gross dividends, without the possibility of a credit. In line with case C-342/10 Commission v. Finland, the Commission considers the higher taxation of insurance companies established elsewhere in the EU/EEA to be incompatible with the freedom of capital movement under Article 63 of the Treaty on the Functioning of the European Union and Article 40 of the European Economic Area (EEA) Agreement. The request is in the form of a reasoned opinion. In the absence of a satisfactory response within two months, the Commission may refer the Netherlands to the EU’s Court of Justice.

Further details are available on the Commission’s website.