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EU Law and dividend tax reimbursement

22 Dec 2009

In recent years, advances have been made towards the integration of the European internal market in the field of taxation. This integration has not been achieved in the traditional way, through tax harmonisation, but through European Court of Justice (ECJ) case law, and also the coordination of national tax systems implemented with the soft law of the European Commission. Garrigues, our Spanish member, report the effects of these changes on multinationals for Director of Finance Online.

Written by: Rafael Calvo and Salvador Pastoriza - Associates of Taxand
Accreditation: The full article was written for and can be viewed on Director of Finance Online


Taxand's Take

ECJ case law is clear in its recognition of a true single market (EU and EEA) with regard to dividend payments. Thus, there is an opportunity for companies, investment and pension funds to claim a refund of incorrectly paid taxes. Taxand has already identified good chances of success in the reimbursement of withholdings for investment and pension funds in Spain, France, Germany, the Netherlands, Italy, Belgium, Denmark, Poland, Finland, and also in Luxembourg and Portugal with respect to pension funds.

The increasing level of European integration in taxation means that more firms, across the continent, are likely to benefit going forward.

Your Taxand contact for further queries is:
Vicente Bootello
T. +34 91 514 52 00

Taxand's Take Author