4 July 2016

ITEM puts critical questions to governments

ITEM investigates obstacles that occur with cross-border mobility. ITEM explores border issues both through PhD research and through case studies supplied by primary supporters such as border information points. ITEM is also responsible for raising governments’ awareness of certain obstacles and for putting critical questions to the legislator. The aim is to present specific directions for solutions based on research and expertise.

ITEM investigates obstacles that occur with cross-border mobility. ITEM explores border issues both through PhD research and through case studies supplied by primary supporters such as border information points. ITEM is also responsible for raising governments’ awareness of certain obstacles and for putting critical questions to the legislator. The aim is to present specific directions for solutions based on research and expertise. 

In 2016, ITEM put a number of critical questions to various domestic and foreign legislators (and is preparing questions for the Dutch and the European Parliament): 
 

 

Subject Effect on border region ITEM question
1 Required by the Dutch social insurance acts? Also when an employee is working outside of the Netherlands and employer is situated within the Netherlands? Is legislation of the Dutch legislator correct in European law perspective? ITEM has question for European Parliament in the pipeline.
2 Social security. In certain countries, financing of social security through tax-based funding. Are (ex)cross-border workers double-taxed for social security? ITEM has question for European Parliament in the pipeline.
3 DIGI-D for non-Dutch cross-border workers in the Netherlands. Non-Dutch people living outside of the Netherlands who work within the Netherlands are not entitled to a DIGI-D. - Belgian trade union already lodged a complaint with the European Commission in 2015.
- In the autumn of 2015, ITEM pointed out through the internet consultation of “overheid.nl” as regards the decision Personal data electronic services that non-residents should be entitled to a DIGI-D. 
- A letter has been sent to the Ministry of Interior. 
- ITEM has question for European Parliament in the pipeline.
4 Fees Dutch passport. For Dutch people living outside of the Netherlands the issuing of a passport in a Dutch community is much more expensive than for Dutch residents. - In the spring of 2016, ITEM put a question to the Dutch Ministry of Interior whether the difference in costs is not in conflict with EU law, more particularly with the free movement of persons. The higher costs are also in conflict with Article 7, paragraph 4 of Regulation 492/2011, which stipulates that cross-border workers are entitled to the same social benefits as residents.
5 90% regulation: foreign taxable persons.
(Im)possibility to be considered as qualifying foreign taxable person in the sense of Art. 7.8 Wet IB 2001.
An income statement, signed by the tax authorities of the state of residence, needs to be provided. It appears that parts of the German tax authorities, Finanzamt, do not always sign the statements because they consider the form to be incorrect, for the word "beschränkt" is included in the form and the taxable persons under German law are domestic taxable persons, hence subject to unlimited taxation. - In the spring of 2016, ITEM put questions to the Dutch Tax Authorities.
6 Retired persons living in the Netherlands who receive their pension from Germany. Unclear how German compensation (Beitragszuschuss) for costs AWBZ (General Act on Exceptional Medical Expenses) and ZvW (Health Care Insurance Act) is calculated. Furthermore, the Zuschuss is taxed in the Netherlands. Rightly so? - In the spring of 2016, ITEM put a question to the Deutsche Rentenversicherung Bund and Tax Authorities. Meanwhile, a reaction has been received.
7 Draft regulation flexibility effective date AOW (retirement age) With respect to this draft regulation, ITEM asks that consideration be given to employees who have accumulated both Dutch and foreign statutory pensions. Consider e.g. migrant workers, labour migrants and cross-border workers. For the statutory retirement age in Belgium, Germany and the Netherlands varies. The consequence for a cross-border worker who has accumulated statutory pension both in the Netherlands and in one of these two neighbouring countries is that he "will have to wait" for some time for his AOW compensation when he receives this foreign statutory pension.
This may have an impact on the income position of this (ex)cross-border worker.
- In the beginning of June 2016, ITEM submitted a letter to the Second Chamber of the States-General, standing committee for social affairs and employment.

For more information about current developments, follow ITEM on Twitter (@ITEM_UM) or consult the ITEM website.