PhD student: Dr B.M.M. Didden

Promotors: Mrs Dr A.H.H. Bollen-Vandenboorn, M.J.G.A. Weerepas

Duration: 15/9/2015 - 14/9/2018

PhD defence: Maastricht, 8/11/2019

Abstract:

The European Commission aims at the specification and stimulation of an adequate pension. European countries have initiated reforms of pension systems not only to provide an adequate pension but also a financially sustainable pension system. These reforms, however, all have a national focus. The pension systems of the European countries show a wide variety. In some countries, for instance, the emphasis is on the first pillar pension (social security), while in other countries the second pillar pension is important, whereas in an internal situation, both pillars mostly are attuned to each other.In cross-border situations, an entirely different legislation (Regulation 883/2004) applies to first pillar pensions than to second pillar pensions (tax treaties). Also the tax treatment of the pension is not the same in every country (not every country e.g. allows premium deduction or provides exemptions during the acrual phase based on the same conditions). The problems are aggravated because the one and the same pension can be characterized differently. When a mobile employee builds up a pension in cross-border situations, he will be confronted with the problems of this pension qualification. Depending upon the qualification, he may or may not qualify for tax relief concerning the pension accumulation, but he may also encounter favourable or less favourable tax consequences if the pension is paid out. The aim of this research is to reach common criteria that from a European perspective can be applied in cross-border pension situations, resulting in an equal tax treatment guaranteeing the free movement of workers.