Dutch Supreme Court decision on Dutch dividend withholding tax treatment of foreign shareholders

On 4 March 2016, the Dutch Supreme Court (“Court”) delivered its final judgments in X, Miljoen, and Société Générale (Joined Cases C-10/14, C-14/14, C-17/14), both referring to the refund of Dutch withholding tax on dividends to foreign (non-Dutch) individual and corporate shareholders. The Court held that the Dutch dividend withholding tax breaches the freedom of capital to the extent that the tax borne by foreign shareholders in the Netherlands is more burdensome than the personal or corporate income tax which is borne by their Dutch resident counterparts. Accordingly, foreign dividend recipients that actually bear a comparatively heavier tax burden in the Netherlands would be eligible for a refund of the excess Dutch dividend taxes levied. Comparative calculations must be made on a case-by-case basis. The Court´s judgments follow the preliminary rulings of the Court of Justice of the European Union (“CJEU”) in these cases of 17 September 2015.

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If you have any questions, please do not hesitate to contact Anna-Maria Widrig-Giallouraki.

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Anna-Maria Widrig Giallouraki

Anna-Maria Widrig Giallouraki

Anna-Maria Widrig Giallouraki

Birchstrasse 160
Postfach, 8050 Zürich
+41 58 792 42 87

Maria Widrig Giallouraki is a Senior Manager in Corporate Tax, specialised in advising international corporate groups on tax structuring. Maria is further due to her background and working experience specialised in EU tax matters and in charge of EU direct tax law at PwC Switzerland, actively acquiring EU related tax mandates for Swiss multinationals and their EU subsidiaries. Finally, due to her background and working experience in Greece, Maria is also in charge of cross-border structuring cases involving Greek companies and entrepreneurs.