EU Rejects French 'Discriminatory' Pension Taxation

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The European Commission has decided to refer France to the European Union’s (EU) Court of Justice for discriminatory taxation of foreign pension and investment funds, which it considers to be in breach of European Union rules on free movement of capital.

Defending its decision, the Commission argues that in particular, France does not grant a withholding tax exemption on dividends distributed by French companies to pension and investment funds established in the EU and in the European Economic Area (EEA) whereas it grants such an exemption if the pension and investment funds are established in France

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