Press Release: Taxation of interest and royalties: Commission takes steps against Lithuania

The European Commission has sent an additional reasoned opinion (the second step of the infringement procedure of Article 226 of the EC Treaty) to Lithuania about its rules under which interest paid to foreign variable capital investment companies and closed-end investment companies (including investment funds and pension funds) is taxed more heavily than interest paid to comparable domestic recipients. The additional reasoned opinion also addresses the taxation of royalty payments to non-resident companies. Lithuania is requested to reply within two months, or the case might be brought before the European Court of Justice.