Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 1/16/2013

Luxembourg - Refunds for investment funds of French withholding tax 

January 16:   The French tax authorities in late December 2012 announced an initial decision to issue a refund of withholding tax on dividends distributed to a Luxembourg SICAV.

The action of the French tax authorities is viewed as a positive step for investment funds and in general follows the judgment of the Court of Justice of the European Union (CJEU) in the Santander case (C-338 to C-347/11).


In that case, the CJEU concluded that the French withholding tax regime on outbound dividends remitted to foreign UCITS (undertakings for collective investment in transferable securities) and dividends distributed to foreign investment funds was contrary to EU law.


Read TaxNewsFlash-Europe: France - Opportunity for reclaiming withholding tax on dividends paid to foreign investment funds

KPMG observation

Tax professionals in Luxembourg believe that investment funds that have not yet acted and filed refund claims need to consider filing such claims for refunds of the 30% / 25% withholding tax levied by France on dividends distributed since 1 January 2009.


Claims must be filed before 31 December 2014, but prudent taxpayers may consider acting as soon as possible, in light of the current 30% levy on dividend distributions to foreign investment funds.


Read a January 2013 report [PDF 133 KB] from the KPMG member firm in Luxembourg: France reimburses substantial amounts of withholding tax to Luxembourg SICAV




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