WRITTEN QUESTION No. 420/98 by Graham WATSON to the Commission. German tax regime
C 386/16 Official Journal of the European Communities EN 11. 12. 98 Answer given by Mrs Wulf-Mathies on behalf of the Commission (20 April 1998) It should be noted that construction of the solid urban waste transfer station in Vigo was not part-financed by Community funds. However, in June 1997 the Spanish authorities submitted a plan for the management of waste in Galicia to the Commission for part-financing by the Cohesion Fund (not by the European Regional Development Fund). The Commission is currently carrying out a detailed evaluation of the project, with technical support from outside experts. A decision to provide part-financing could be taken only if this project complies with all Community policies, including that on the environment. As part of its consideration of the complaint it received, the Commission has asked the Spanish authorities for more information. It will keep the complainants informed of developments in this matter. (98/C 386/020) WRITTEN QUESTION E-0420/98 by Graham Watson (ELDR) to the Commission (24 February 1998) Subject: German tax regime Two years ago the German authorities introduced an Ausländersteuerí on anyone working in Germany in sport or the arts. This levy is a flat rate at 25 %. A Briton working in Germany and paying 7 % Solidaritätszuschlagí on earnings has the right to reclaim 25 % from the Finanzamt since he is a UK national. In reality this is beset with many problems. Is the Commission aware of the tax? What is their estimate of its effects and does the Commission believe it is a barrier to free movement which could be challenged in law? Answer given by Mr Monti on behalf of the Commission (5 May 1998) The Commission is aware of the changes in German legislation whereby the special rate of 15 % withholding tax, which was levied on fees paid to non-resident artists and sportsmen, was abolished in 1996, with the result that such payments are now subject to the general minimum rate of 25 % charged in Germany on the income of non- residents. Depending on the individualís circumstances, this tax may be totally or partially reimbursed following the submission of a tax return. Furthermore, the German taxes give rise to a tax credit against United Kingdom tax payable on this income under the existing bilateral tax convention. Under these circumstances and taking into account the fact that income taxes are not harmonised within the Community, the Commission does not see a case for any legal challenge to the relevant legislation