Order — ECLI:EU:C:2007:275
Date: 2007-05-10
Language of the case: Swedish
Court formation: Fourth Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Free movement of capital
Concepts: Free movement of capital and freedom of payments;General
Procedure: Reference for a preliminary ruling
Origin: Sweden

Summary of the Order Freedom of movement for persons – Freedom of establishment – Provisions of the Treaty – Scope (Arts 43 EC and 56 EC) A national measure which, within the framework of taxation on share dividends as income from assets up to a flat-rate yield calculated by applying a specific percentage to a base including, in addition to the capital invested by the shareholder, a fraction of the remuneration paid to employees of the company issuing the dividends, does not permit the taking into account of the salaries of workers employed in a branch of that company, or by a subsidiary of it, in a non-member country, fundamentally affects freedom of establishment within the meaning of Article 43 EC et seq. If such a measure were to have restrictive effects on the free movement of capital, such effects would be the unavoidable consequence of the restriction on freedom of establishment and do not justify an examination of that measure in the light of Articles 56 EC and 58 EC. Article 43 EC et seq. may not be relied upon in a situation involving the establishment of a company of a Member State in a non-member country. The chapter of the Treaty relating to freedom of establishment does not include any provision which extends the scope of its provisions to such a situation. (see paras 27, 29-30, operative part)