Press Release: Taxation of outbound dividends and interest: Commission takes steps against Lithuania and Latvia

The European Commission sent a 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 companies, investment funds and pension funds is taxed more heavily than interest paid to comparable domestic recipients. It also sent a request for information in the form of letter of formal notice (the first step of the infringement procedure of Article 226 of the EC Treaty) to Latvia about its rules under which dividends paid to non-resident individuals may be taxed more heavily than dividends paid to residents. Lithuania and Latvia were asked to reply within two months.