The European Commission will carry out a profound assessment of national direct taxes to determine whether they generate unfair disadvantages for workers that live in one Member State and work in another. In cases where discrimination or violations of the EU’s fundamental freedoms are found, the Commission will flag them to the national authorities for the necessary changes to be made. If problems persist, the Commission will start infringement procedures against the Member States involved.
Member States’ tax provisions are to be scrutinised to ensure that they do not discriminate against cross-border workers. It is estimated that more than 1.2 million people work cross-border in the EU. Gross wages paid to cross-border and seasonal workers in 2010 amounted to €46.9 billion. Worker mobility has been identified as one of the key potentials for increasing growth and employment in Europe. However, tax obstacles remain one of the key deterrents to citizens looking for work in another Member State.
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