France reimburses substantial amounts of withholding tax to Luxembourg SICAV
On 24 December 2012, the French tax authorities have issued the first decision of reimbursement for a Luxembourg SICAV.
This decision constitutes a very positive evolution in the practice of the French tax authorities, following the European Court of Justice’s decision in the Santander case (C-338 to C-347/11) that confirmed the illegality of the French withholding tax on outbound dividends to foreign UCITS.
As a consequence, we believe that investment funds that have not acted yet, should now file tax reclaims to ask for the refund of 30% / 25% withholding tax levied on dividends distributed since 1 January 2009.
Claims have to be filed before 31 December 2014 at the latest. However, KPMG recommends to a
ll its clients to act as soon as possible, in order to minimize the cash disadvantage that constitutes the current 30% levy on dividend distributions to foreign investment funds.
For further information please contact us.
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