It has also sent requests for information in the form of letters of formal notice (the first step of the infringement procedure) to Bulgaria about its rules, under which inbound dividends paid to companies may be taxed more heavily than domestic dividends, and to Romania and Bulgaria regarding rules under which outbound dividends paid to companies may be taxed more heavily than domestic dividends.

The EU member states have been asked to reply within two months.

At the same time, the Commission announced that it has closed the case against Luxembourg on the higher taxation of outbound dividends paid to companies, as Luxembourg has eliminated the discriminatory taxation.

"I am pleased to note that Luxembourg has changed its discriminatory tax rules on outbound dividends" stated EU Taxation and Customs Commissioner László Kovács, who went on to add:

"I am confident that eventually all Member States which still have similar discriminatory rules will also amend their legislation accordingly."

Outbound dividends are dividends paid by domestic companies to shareholders resident in other States.

Domestic dividends are dividends paid by domestic companies to domestic shareholders.

Inbound dividends are dividends paid by companies resident in other States to domestic shareholders.