WRITTEN QUESTION No. 68/99 by Esko SEPPÄNEN Double taxation of pensions paid from Sweden to Finland
Date: 1999-01-27
Institutions: European Parliament, SEPPAENEN
Subjects: Finland, Sweden, double taxation, free movement of persons, international tax law, pension scheme, self-employment, social security, tax harmonisation, wage earner

3.12.1999

EN

Official Journal of the European Communities

C 348/17

(1999/C 348/020)

WRITTEN QUESTION E-0064/99

by Carlos Robles Piquer (PPE) to the Commission

(27 January 1999)

Subject: Community approach to nuclear energy

Whilst the attempts by some countries to dismantle their nuclear installations indicate the shift away from this
energy source in the West, its supporters predict its inevitable resurgence within twenty years.

The debate, based on emotional rather than rational arguments, has practical repercussions and raises
expectations that a cleaner energy source will be developed than the use of coal, oil or natural gas to generate
electricity.

Given the responsibility placed on it in the field of nuclear energy by virtue of the corresponding legal texts,
will the Commission say what approach it has adopted and will adopt with a view to pinpointing accurately for
Community public opinion the genuine assets of nuclear energy and the problems it can resolve, at a time
when worldwide energy demand is on the increase?

Answer given by Mr Papoutsis on behalf of the Commission

(3 March 1999)

The current and future part played by civil nuclear energy in the Community’s and the world’s energy supplies
was examined by the Commission in its communication on the nuclear industries in the European Union: an
illustrative nuclear programme within the meaning of Article40 of the Euratom Treaty (1).

This document examines, in particular, the main characteristics of the nuclear industry and identifies the
challenges that it must meet.

(1) COM(97) 401 final.

(1999/C 348/021)

WRITTEN QUESTION E-0068/99

by Esko Seppänen (GUE/NGL) to the Commission

(27 January 1999)

Subject: Double taxation of pensions paid from Sweden to Finland

Together with Esko-Juhani Tennilä, Member of the Finnish Parliament, I have written to the Commission
asking it to ascertain whether the Finnish authorities’ practice of taxing pensions paid from Sweden violated
citizens’ freedom of movement within the EU. In addition, I have tabled two written questions on the subject,
in reply to which the Commission said that it was looking into the matter and would inform me of its position
in autumn 1998. No answer has yet been given. What is the Commission’s position on the subject?

Answer given by Mr Monti on behalf of the Commission

(6 April 1999)

The Commission cannot see any incompatibility with Community law of the manner in which Swedish
pensions have been taxed in Finland in the past and are taxed today. In general, the fact that taxes differ from
one Member State to another is a consequence of the absence of harmonisation of income taxes at Community
level. The Commission does not consider these differences to be in conflict with the free movement of people,
even if tax burdens can conceivably influence a citizen when deciding in which Member State to live.

As regards the concrete situation of Finnish residents who receive Swedish pensions, these pensions are paid
after deduction of 25 % Swedish withholding tax applied to the pension beyond the allowance of SKR 40 000
(± € 4 500). Under Article 18(1) of the Nordic income and capital tax convention (identical in the 1989 and
1996 versions) such pensions are only taxable in Sweden, thus exempted from tax in Finland. However, by