WRITTEN QUESTION No. 1385/99 by Ria OOMEN-RUIJTEN Discrimination against Dutch contractors under German tax legislation
Date: 1999-09-01
Institutions: European Parliament, OOMEN-RUIJTEN
Subjects: Germany, building industry, infringement of EU law, tax harmonisation

29.1.2000

EN

Official Journal of the European Communities

C 27 E/37

to achieve this objective, including the definition of the modalities for the inclusion of those functions of
the WEU which will be necessary for the EU to fulfil its new responsibilities in the area of the Petersberg
tasks. The aim is to take the necessary decisions by the end of the year 2000. The EU Presidency will
present a progress report to the Helsinki European Council meeting.

3.
The Honourable Member will recall that Article 11 of the TEU mentions, among the objectives of the
Common Foreign and Security Policy, the preservation of peace and strengthening of the international
security in accordance with the Charter of
in Cologne
reaffirmed this principle.

the United Nations. The European Council

The aim of the European Council was clearly to strengthen the Common Foreign and Security Policy by
providing it with the necessary means to carry out crisis management tasks.

The question of collective defence of Member States is equally clearly not addressed, the conclusions of the
European Council recalling that NATO remains the foundation of the collective defence of its Members
and not the policy of the Union.

(2000/C 27 E/042)

WRITTEN QUESTION P-1385/99

by Ria Oomen-Ruijten (PPE-DE) to the Commission

(1 September 1999)

Subject: Discrimination against Dutch contractors under German tax legislation

Is the Commission aware that, on 19 March 1999, the German Bundesrat adopted a bill concerning

1.
new tax legislation including Article 50a(7) and (8) of the Income Tax Act?

Is it true that, under these provisions, the principals of foreign contractors (or subcontractors)
2.
engaged on projects in Germany are required to withhold 25 % of the total value of the contract to cover
tax payments?

Does the Commission agree that, as a result of this provision, foreign companies are reticent about
3.
accepting contracts in Germany, which constitutes a restriction on the free movement of persons, goods
and services?

4. What view does the Commission take of this provision and its admissibility and what measures does
it intend to take if appropriate?

(2000/C 27 E/043)

WRITTEN QUESTION E-1389/99

by Klaus-Heiner Lehne (PPE-DE) to the Commission

(1 September 1999)

Subject: Discrimination against EU citizens in the Federal Republic of Germany

On 1 April a change to income tax law was introduced in the Federal Republic of Germany. Under § 50a
(7) of the Income Tax Law, German firms which have awarded a contract to foreign contractors, including
EU citizens or businesses, are required to pay only 75 % of the agreed remuneration to the contractor and
the remaining 25 % direct to the tax authorities in Germany, in order to cover any tax liability on the part
of the foreign contractor.

This rule results in discriminatory treatment of contractors from other EU countries:

1. What is the Commission(cid:146)s opinion of these new provisions of German tax legislation?

2. What action does the Commission intend to take against these provisions, which discriminate against

citizens of other EU countries?