Direct Taxation: The European Commission proposes an EU-coordinated approach on exit taxation

In the framework of an EU-coordinated approach in direct taxation (IP/06/1827), the European Commission invites Member States to better coordinate their national exit tax rules.

Exit taxes are levied by many Member States on accrued capital gains when taxpayers move their residence or transfer individual assets to another Member State. The Communication examines how Member States' exit tax rules on individuals and companies can be made compatible with the requirements of EC law. It also gives guidance on how to make such national rules compatible with each other with a view to removing double taxation or unintended non-taxation and preventing abuse and tax base erosion.

See MEMO/06/499