Finland moet belastingregels voor loon en pensioen voor niet-Finnen wijzigen (en)

The European Commission has sent Finland a formal request to amend its legislation concerning the taxation of employment-related salaries and pensions. Under Finnish law such income is subject to a final withholding tax at a rate of 35% when it is paid to non-resident individuals whereas for resident individuals it is taxed according to a progressive scale. The Commission considers that the difference in the tax treatment of the two categories of taxpayer, in so far as it results in a higher tax burden on the income of non-resident individuals in situations objectively similar to those of residents, constitutes indirect discrimination on the grounds of nationality prohibited by the Treaty. The request is in the form of a reasoned opinion, the second stage of the infringement procedure under Article 226 of the Treaty. If Finland does not amend its legislation within two months, the Commission may refer the matter to the Court of Justice.

Finnish tax legislation subjects resident individuals to a state income tax at a progressive rate ranging from 0% to 34% plus a flat rate municipal tax of between 16% and 20%, depending on the municipality. However, non-resident individuals are subjected to tax at a flat rate of 35% on any such income. Resident taxpayers also benefit from various deductions and allowances which are never available to non-residents, even where the non-residents derive most or all of their worldwide income from Finnish sources. As a result, non-residents may be subject to a higher tax burden than resident individuals since the latter may, as a result of the progressive taxation system, be subject to an effective rate of tax of less than 35%. The difference in treatment is thus most significant in the case of taxpayers receiving a comparatively low income, such as pensioners.

The European Court of Justice has repeatedly held that, in so far as resident and non-resident taxpayers are in objectively similar situations, treating them differently by, for example, imposing a higher tax burden on non-residents constitutes indirect discrimination on the grounds of nationality within the meaning of the Treaty.

The Commission, on the basis of these principles, considers that the Finnish tax legislation fails to conform to EC Treaty requirements. The higher tax burden on non-residents may dissuade individuals from taking up employment in Finland while remaining resident for tax purposes in another Member State or European Economic Area (EEA) country (e.g. from performing seasonal work in Finland). It also discourages Finnish resident individuals receiving Finnish source pension income from moving to other Member States or EEA countries. Moreover, it makes it less attractive for Finnish employers to recruit labour from other Member States and EEA countries rather than locally, which impacts negatively on non-residents' ability to exercise their rights guaranteed by the Treaty and the EEA Agreement.

The latest information on infringement procedures concerning all Member States can be found at:

http://europa.eu.int/comm/secretariat_general/sgb/droit_com/index_en.htm