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Multinationals may be entitled to claim refunds


An additional levy on profits distributed by companies subject to corporate tax in France may be in breach of EU law as it favours a certain legal form. Taxand Finland explains why businesses may be entitled to compensation.

Under EU law, companies should have the freedom to choose the most appropriate legal form for doing business in another Member State. This freedom of establishment is however restricted when a Member State introduces tax provisions that favour or discriminate a certain legal form.

This difference in tax treatment between a French permanent establishment of a foreign company and a French subsidiary of a foreign company, whose intra-group dividends are within the scope of the contribution, is likely to constitute a restriction of the freedom of establishment.

Discover more: Finnish groups may be entitled to claim tax refunds

Your Taxand contact for further queries is:
Einari Karhu
T. +358 9 6153 3431

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Taxand's Take

The French subsidiaries of Finnish companies may claim repayment of contribution levied on dividends distributed to their parent company. The repayment of the contribution levied in 2012 can be claimed until 31 December 2014.

Taxand's Take Author

Einari Karhu

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