• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 4/23/2014

France - Refund opportunities for investment funds 

April 23: What are the implications in France of a recent judgment of the Court of Justice of the European Union (CJEU) in a tax case involving withholding tax on dividends paid by EU companies to a non-EU investment fund?

In Emerging Markets Series of DFA Investment Trust Company, C-190/12 (10 April 2014), the CJEU concluded that the free movement of capital principle applies to dividends paid by companies in an EU Member State to investment funds established in non-EU Member States. Here, the Polish tax authorities had denied a U.S. investment fund, a tax exemption on dividends paid by companies established in an EU Member State to the investment fund. Read TaxNewsFlash-Europe.

The judgment in the Emerging Markets case is not viewed as undermining the position of the French high tax court (Conseil d’Etat) in the Santander case (addressing the different tax treatment for French-sourced dividends received by resident and non-resident undertakings with respect to collective investments in transferable securities).

Refund opportunities

The Emerging Markets case may provide opportunities for refunds of withholding tax, provided that non-EU investment funds timely file their refund claims. Investment funds that want to seek refunds of withholding tax paid on or after 1 January 2009 must file their refund claims before 31 December 2014.

Read an April 2014 report [PDF 642 KB] prepared by tax professionals with Fidal Direction Internationale.*

For more information, contact a tax professional in Paris or with KPMG’s French tax center in New York:

Laurent Leclercq

+33 (0)1 55 68 16 42

Yves Robert

+33 (0)1 55 68 15 76

Séverine Lauratet

+33 (0)1 55 68 16 25

Gilles Galinier-Warrain

+1 212-954-8605

*Fidal Direction International is a French law firm that is independent from KPMG and its member firms.

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