CELEX: 51979PC0737
Language: en
Date: 1979-12-12
Title: PROPOSAL FOR A COUNCIL DIRECTIVE CONCERNING THE HARMONIZATION OF INCOME TAXATION PROVISIONS WITH RESPECT TO FREEDOM OF MOVEMENT FOR WORKERS WITHIN THE COMMUNITY

N o C 21/6                          Official Journal of the European Communities                                26. 1. 80
    This price shall be fixed at the same time as the                                  Article 2
    activating price and in accordance with the same
    procedure.                                                This Regulation shall enter into force on 1 March
                                                               1980.
    In the case of undertakings extracting protein
    concentrate, the abovementioned aid shall be              It shall apply to peas and field beans employed as
    granted only in proportion to the quantities of           from 1 May 1980.
    products intended for use in animal feedingstuffs
    and provided that their protein content is at least       This Regulation shall be binding in its entirety and
    equal to a minimum to be determined '                     directly applicable in all Member States.
              Proposal for a Council Directive concerning the harmonization of income taxation
                 provisions with respect to freedom of movement for workers within die Community
                          (submitted by the Commission to the Council on 21 December 1979)
THE COUNCIL OF THE EUROPEAN                                   whereas it is much simpler for the frontier worker to
COMMUNITIES,                                                  have to deal only with the tax authorities of that
                                                              Member State; whereas these considerations militate
Having regard to the Treaty establishing the                  in favour of taxing the frontier worker in that
European Economic Community, and in particular                Member State in respect of his employment income
Article 100 thereof,                                          derived from another Member State;
Having regard to the proposal from the Commission,            Whereas the Member State in which a frontier
                                                              worker exercises his employment must nonetheless be
Having regard to the opinion of the European Par-             able to levy a withholding tax on the income of such
liament,                                                      a worker; whereas the withholding tax should not,
                                                              however, be greater than that levied on the income of
                                                              a resident worker in otherwise identical circum-
Having regard to the opinion of the Economic and
                                                              stances; whereas the Member State of which the
Social Committee,
                                                              frontier worker is a resident must credit the
                                                              withholding tax against the tax it levies on his
Whereas freedom of movement for workers is a                  employment income and repay any excess, thus
fundamental objective of the Treaty;                          assuring taxation at the level prevailing in that
                                                              Member State;
Whereas the present systems of income taxation have
different rules for residents and non-residents;              Whereas, in order to ensure the uniform application
whereas these differences may penalize workers who            of these rules of taxation, it is necessary to establish a
exercise their employment in Member States where              common definition of 'frontier worker';
they are not resident for tax purposes; whereas these
differences are most acute in the case of frontier            Whereas it may be left to the Member States
workers;                                                      concerned to regulate by agreement the allocation
                                                              between themselves of the revenue accruing from this
Whereas, in order to ensure greater freedom of                taxation;
movement for workers, it is essential to reduce the
differences that exist in the taxation of the                 Whereas it is expedient to lay down at the same time
employment income of resident and non-resident                common rules for taxing the employment income of
workers;                                                      other non-resident workers, including income from
                                                              public, private or social security pensions; whereas
Whereas a frontier worker returns as a rule daily to          such income should be taxed in the Member State in
the Member State where he resides and pays his                which it arises but should not be subjected to more
indirect taxes for the most part to that Member State;        burdensome taxation than in the case of a resident
 ---pagebreak--- 26. 1. 80                        Official Journal of the European Communities                           No C 21/7
worker; whereas there are grounds for applying a pro        in Belgium:
rata rule to the general tax reliefs granted by that        Impdt des personnes physiques/Personenbelasting,
Member State where the worker has other income;             Imp6t des non-r£sidents/Belasting der niet-ver-
whereas Member States should be left free to                blijfhouders;
determine the progressive rate applicable to the
employment income by taking into account all the            in Denmark:
worker's income, both positive and negative, just as if     Indkomstskat til staten,
he were resident;                                           Kommunal indkomstskat,
                                                                                               x
                                                            Amtskommunal indkomstskat,
Whereas provision should also be made, in order to          Folkepensionsbidrag,
ensure equal treatment between resident and non-            Semandsskat,
resident workers, for the case where complete               Saerlig indkomstskat,
equality requires the worker's spouse or children to        Kirkeskat,
be resident in the Member State in which employment
is exercised by granting the worker the option to have      Bidrag til dagpengefonden;
them so regarded;                                            in Germany:
                                                            Einkommensteuer;
Whereas the rule under which payments of interest,           in France:
insurance premiums, pension contributions etc., rank        Impdt sur le revenu;
for tax relief only when they are made to an
institution resident in the taxing Member State can          in Ireland:
affect both freedom of movement for workers and             Income tax;
freedom to provide services within the Community;
                                                             in Italy:
whereas it is therefore desirable to eliminate this
discrimination by making such relief available in the       Imposta sul reddito delle persone fisiche;
case of payments to corresponding institutions in            in Luxembourg:
other Member States,
                                                            Impdt sur le revenu des personnes physiques;
                                                             in the Netherlands:
                                                             Inkomstenbelasting;
HAS ADOPTED THIS DIRECTIVE:
                                                             in the United Kingdom:
                                                             Income tax.
                        PART I
                                                             3.    The provisions of paragraph 1 shall apply also to
           General provisions and definitions                any identical or substantially similar taxes imposed
                                                             subsequently, whether in addition to or in place of
                       Article 1                             the taxes listed in paragraph 2. The Member States
                                                             shall inform one another and the Commission
Each Member State shall apply the provisions of the          whenever sucn a tax enters into force.
following Articles to:
— the taxation of the income of frontier workers,
                                                                                     Article 3
— the taxation of the income of other non-resident
    employed persons,
                                                              1.   For the purposes of this Directive, the term
— the taxation treatment of certain payments.                'resident' is to be interpreted according to national
                                                             tax provisions and the relevant double taxation
                                                              agreements.
                        Article 2
                                                             2.     For the purposes of this Directive, 'frontier
 1. The taxes to which this Directive applies are            worker' means any individual:
taxes on income. All taxes imposed on total income
or on elements of income, irrespective of the manner         (a) deriving income from employment;
in which they are levied, shall be regarded as taxes on
                                                             (b) who exercises that employment in a Member
income.
                                                                  State where he is not resident; and
2.    The taxes referred to in paragraph 1 are at            (c) who is resident in another Member State to which
present:                                                          he returns as a rule daily.
 ---pagebreak--- No C 21/8                           Official Journal of the European Communities                              26. 1. 80
A frontier worker who is posted by his employer to a         State, without being resident there, on the. following
place inside the Community other than his usual place        items of income:
of work so that he is prevented from returning daily
to the place where he resides shall not thereby lose         — income from dependent personal services;
his status of a frontier worker as regards the States        — pensions and other similar remuneration received
mentioned in the first subparagraph, provided that               in consideration of past employment, including
such posting does not exceed in aggregate one third              social security pensions, as well as pensions and
of the days in the calendar year for which he has, or            other similar remuneration paid by a Member
would have if the posting were disregarded, the status           State or a political subdivision or a local authority
of a frontier worker.                                            thereof in respect of past services rendered to that
                                                                 Member State or subdivision or local authority
                                                                 thereof in the discharge of functions of a
                          PART II
                                                                 governmental nature.
              Taxation of frontier workers
                                                                                      Article 7
                         Article 4
                                                             1. The items of income specified in Article 6 may
 1. The employment income of a frontier worker               not be subjected in the taxing State to any more
shall be subject to tax in the Member State of which         burdensome taxation than if the taxpayer were
he is a resident.                                            resident in that State.
                                                             2.    By way of derogation from the provisions of
2.    The Member State in which employment is
                                                             paragraph 1, the Member State may, in taxing the
exercised may, however, levy a tax on that income,
                                                             income specified in Article 6 where a taxpayer has
but only by means of a withholding tax. Where a
                                                             other income, grant that taxpayer the allowances,
withholding tax is levied on residents and non-
                                                             exemptions, deductions and other general tax reliefs
residents alike, it shall not be greater in the case of a
                                                             reserved for resident taxpayers only in the proportion
non-resident than it would be for a resident in the
                                                             that the net income mentioned in Article 6 bears to
same circumstances.                                          the total net income.
3.    The tax which has been levied in accordance            That Member State may also provide that the tax rate
with paragraph 2 shall be credited against the tax           applicable to the income taxable under Article 6 is to
levied on that employment income in the Member               be computed as if the taxpayer were a resident of the
State of which the frontier worker is a resident. To         Member State.
the extent that the tax levied in accordance with
paragraph 2 exceeds the tax levied in the latter                                      Article 8
Member State, the latter Member State shall refund           Where the tax payable on the items of income
the excess to the frontier worker.                           specified in Article 6 in the taxing Member State
                                                             depends upon whether the spouse or children of the
                                                             taxpayer is or are resident in that Member State, that
                         Article 5
                                                             Member State shall, in taxing those items of income,
1. The two Member States concerned shall agree               grant the same tax treatment, if the taxpayer so
upon the apportionment between them of the tax               requests, as if the spouse or children were resident in
receipts and amounts of refund.                              that Member State.
                                                             The provisions of the second subparagraph of Article
2.    Until such time as an agreement is reached, the        7 (2) shall apply correspondingly.
said receipts shall continue to be apportioned in the
same way as the apportionment which would result
from the application of double taxation agreements.
                                                                                      PART IV
                         PART III                                         Tax relief for certain payments
Taxation of employed persons other than frontier
                          workers                                                     Article 9
                                                              1. Where a Member State grants an advantage for
                         Article 6                           the purposes of income tax within the meaning of
                                                             Article 2, whether by way of deduction from the tax
The provisions of Articles 7 and 8 shall apply to            base or otherwise, for payments made by a natural
natural persons other than the frontier workers              person to an insurance company, bank, pension fund,
referred to in Article 3 (2) who are residents of one        building society or any other recipient, such a tax
Member State and who are taxed in another Member             advantage shall not be refused solely because that
 ---pagebreak--- 26. 1. 80                          Official Journal of the European Communities                           No C 21/9
recipient is situated, established or resident in another                              Article 11
Member State.
2.    The Member State which is first mentioned in
                                                                Member States shall bring into force the legal and
paragraph 1 may, as a condition for applying that
                                                                administrative provisions necessary to comply with
paragraph, require the recipient to be subject to
                                                                the provisions of this Directive not later than
similar tax obligations to those which would be
                                                                1 January of the third year following the year of its
required of the corresponding recipient resident in its
                                                                adoption. They shall forthwith inform the
own territory.
                                                                Commission thereof.
                          PART V
                      Final provisions
                         Article 10
                                                                                       Article 12
The provisions of this Directive shall not constitute an
obstacle to the application of national provisions
necessary to avoid fraud and abuse.                             This Directive is addressed to the Member States.
              Proposal for a Council Regulation approving two Agreements in the form of an exchange
              of letters between the European Economic Community and the Government of Canada
                                                   concerning fisheries
                           (submitted by the Commission to the Council on 21 December 1979)
THE COUNCIL OF THE EUROPEAN                                     Government of Canada concerning salmon fishing,
COMMUNITIES,                                                    signed in Brussels on . . . ;
Having regard to the Treaty establishing the
European Economic Community, and in particular                  HAS ADOPTED THIS REGULATION:
Article 43 thereof,
Having regard to the proposal from the Commission,                                     Article 1
Having regard to the opinion of the European Par-               The Agreement in the form of an exchange of letters
                                                                between the European Economic Community and the
liament,
                                                                Government of Canada concerning the extension for
                                                                 1980 of their Agreement on fisheries and the
                                                                Agreement in the form of an exchange of letters
                                                                between the European Economic Community and the
Whereas it is in the Community's interest to approve            Government of Canada concerning salmon fishing are
the Agreement in the form of an exchange of letters             approved on behalf of the Community.
between the European Economic Community and the
Government of Canada concerning the extension for
 1980 of their Agreement on fisheries and the
Agreement in the form of an exchange of letters                 The instruments referred to in the         preceding
between the European Economic Community and the                 paragraph are annexed to this Regulation.