Documents Pacolet, Jozef 18 results

"In order to prove that a person is subject to a social security system a so-called ‘Portable Document A1 (PD A1)' is issued by the Member State whose legislation remains applicable. This certificate concerns the social security legislation which applies to a person and confirms that this person has no obligations to pay contributions in another Member State. It should be noted that a PD A1 is not only issued to persons active under Article 12 of the Basic Regulation but also to several other mobile workers, such as persons who pursue an activity in two or more Member States, mariners and flight or cabin crew members. This report presents the results of the data collection on the number of PDs A1 issued by the EU Member States and EFTA countries during reference year 2018."

"Free movement of persons would not be possible without the guarantee that citizens do not lose their social security protection when moving to another country in Europe. The common rules to coordinate the different national systems of social security cover anyone who moves to another country to settle permanently, work temporarily or study, and even those who are travelling to take a holiday.

This statistical report provides an overview and evaluation of the current data collection and reporting on the EU coordination of social security systems. It draws conclusions and identifies trends by area of social security."

"Several reasons favour increased ‘temporary' intra-EU labour mobility through posting of workers rather than a more ‘permanent' kind of intra-EU labour mobility through migration of EU-workers and self-employed persons, as a prerequisite for an optimum currency area or as a stabilisation tool to support adjustment to asymmetric shocks. Moreover, other criteria to realise an optimum currency area and to stabilise asymmetric shocks, in particular through fiscal transfers and wage flexibility, could be fulfilled by the posting of workers as well. This posting mechanism, which involves workers being temporarily employed in a Member State other than their Member State of origin but still being taxed in their Member State of origin, is therefore a useful stabilisation tool in case the Member State of origin is confronted with an asymmetric shock. The impact of the stabilisation effect of posting workers will be determined by several aspects: the number of posted workers, the wage earned in the Member State of temporary employment and finally the period of posting. This stabilisation effect was calculated for Greece. If some 10% of the current unemployed population living in Greece would be posted for a period of 6 months or longer, yearly approximately € 1 billion labour tax revenues would be collected by Greece, which is equal to roughly 4% of their total labour tax revenues. We recommend on this basis that Greece could encourage the use of posting of workers as potential stabilisation tool."

"Posted workers provide on a temporary basis services for their employer outside the Member State where the employer is established. Their wages are taxed for a certain period of time at the taxation level of the sending Member State, which is also the recipient of these tax revenues. The differences in labour tax rates between the sending and the receiving Member State might lead to a tax and competitive advantage for ‘foreign' service providers and their employees posted to another Member State. Labour taxes levied to the income of the posted workers are estimated to be equal to approximately 0.7% of the total monthly labour tax revenues of the sending Member States. Sending ‘new' Member States are clearly more dependent on the labour tax revenues of posted workers as share of the total labour tax revenues compared to the sending ‘old' Member States. Also, labour tax revenues from these workers living in the sending ‘new' Member States would decrease by 77% if these workers would not be posted but employed in their sending Member State. This outcome is the result of an important flow of posted workers towards higherwage Member States. It proves that sending Member States benefit from respecting minimum wages in the Member State of employment and the collection of the proper amount of social contributions and income taxes. Otherwise, these labour tax revenues will be much lower. An alternative scenario, a tax harmonisation based on the ‘source' principle (i.e. paying taxes at the taxation level of the receiving Member State in the sending Member State) could be introduced in order to remove tax competition and to create (already ongoing) upward ‘social' convergence. This alternative scenario on average increases labour tax revenues from posted workers ‘only' by 3% compared to the current situation, in particular since labour tax rates of the ‘new' and ‘old' Member States are quite similar to each other. Where labour tax revenues from posted workers will decrease by 2% in the ‘old' sending Member States, a higher increase of revenues will be realised in the ‘new' sending Member States (+8%)."