WRITTEN QUESTION No. 1097/98 by Marianne THYSSEN to the Commission. Discrimination in double taxation conventions
Date: 1998-03-30
Institutions: European Parliament, THYSSEN
Subjects: Belgium, Netherlands, double taxation, tax convention, tax system, worker (EU)

C 402/74

Official Journal of the European Communities

EN

22.12.98

Answer given by Mrs Bonino on behalf of the Commission

(12 May 1998)

The Commission is aware of the press reports referred to by the Honourable Member. The facts reported by the
Dutch media concern the failure to comply with a bilateral agreement between the Netherlands and Russia, under
which only meat from animals raised and slaughtered in the Netherlands can be exported to Russia.

On the basis of the information available, it does not appear that Community policy on BSE has been jeopardised
by the failure on the part of the Netherlands authorities to comply with the bilateral agreement with Russia.

Similarly, as regards export refunds, the practices reported have not given rise to any undue payments.

Nevertheless, as part of its on-the-spot checks, the Commission will pay special attention to the way in which the
Netherlands authorities apply the relevant Community legislation. The responsibility for day-to-day controls in
this matter rests with the national authorities.

(98/C 402/091)

WRITTEN QUESTION P-1097/98

by Marianne Thyssen (PPE) to the Commission

(30 March 1998)

Subject: Discrimination in double taxation conventions

One of the consequences of the double taxation convention between the Netherlands and Belgium of 16 August
1971 is that a Dutchman and a Belgian both living in Belgium in the same local authority and working in the
Netherlands for the same Dutch firm are taxed differently. The Belgian pays tax in Belgium and the Dutchman in
the Netherlands in accordance with the rules of the relevant tax systems,

Does the Commission feel that this difference infringes the principle of non-discrimination on grounds of
nationality, as set out in Articles 6 and 48(2) of the Treaty establishing the European Communities?

Answer given by Mr Monti on behalf of the Commission

(2 June 1998)

The Honourable Member states that Dutch and Belgian workers living in Belgium and working in the
Netherlands are taxed differently, income tax being payable by Belgian workers in Belgium and by Dutch
workers in the Netherlands.

The Commission would point out that, according to the information in its possession, the agreement existing
between Belgium and the Netherlands on the taxation of workers (Article 15) makes no distinction on the basis of
nationality. Under this provision, frontier workers are taxed, irrespective of their nationality, in the Member State
where they are resident, while other workers are taxed in the Member State where they pursue their employment.

The Member State of taxation is different only in the case of civil servants (Article 19). According to this
provision, Dutch nationals working in the Dutch civil service while residing in Belgium are taxed in the
Netherlands and Belgian frontier workers in similar circumstances are taxed in Belgium (provided that they do
not have dual Belgian-Dutch nationality).

The Commission considers that the distinction made in respect of civil servants does not constitute an
infringement of Community law as it stands at present.