Lack of action by European institutions on double taxation discouraging mobility and free movement of labour within the EU

7.10.2015

Question for written answer E-013636-15
to the Commission
Rule 130
Milan Zver (PPE) , Romana Tomc (PPE)

On 11 February 2015, the Commission provided an answer to Question E-010283/2014 of 5 December 2014 which was unsatisfactory.

The lack of regulation in the area of taxation of (cross-border) migrant workers strongly discourages EU citizens' mobility and hinders the free movement of labour within the EU, which the Commission believes to be one of the keys to success for the European economy.

Slovenian migrant workers pay much higher taxes than their Austrian colleagues working in the same environment. For night shifts and holiday work and for working with hazardous substances they receive supplements which are tax-exempt in Austria. Slovenia, on the other hand, taxes these supplements because it is gross earnings that are transferred from the Austrian tax system, not the tax base. Austria grants certain reliefs to cross-border migrant workers on account of their circumstances, but then Slovenia takes back any money they have saved.

This is discriminatory against Slovenian citizens and is contrary to the fundamental principle of European integration, which is based on the free movement of people.

— When will people see the results of the activities undertaken by the Commission in connection with this issue (public consultations, etc.)?— Why has there been no significant progress on EU legislation to regulate this matter?— If the slowness in addressing this issue is not the fault of the Commission, where then does the fault lie, with the Council or with some of the Member States?